In a move that has surprised the industry, Sony Corporation has announced an agreement to sell a majority stake in its home entertainment business to TCL, which would see Bravia TVs continue to be produced, but using TCL displays.
The memorandum of understanding for the intention, jointly announced by the two companies, would see TCL holding 51% and Sony holding 49% of its shares. The joint venture would operate globally, handling the full process from product development and design to manufacturing, sales, logistics, and customer service for products including TVs and home audio equipment.
Sony and TCL will proceed with discussions toward executing definitive binding agreements by the end of March 2026. Subject to execution of the definitive agreements and relevant regulatory approvals and other conditions, the new company is expected to commence operations in April 2027.
The idea is to leverage Sony’s picture and audio technology, brand value, and operational expertise, including supply chain management, while using TCL’s advanced display technology, global scale advantages, industrial footprint, end-to-end cost efficiency, and vertical supply chain strength. The new company’s products would continue to carry the Sony and Bravia brand names.
“We are pleased to have reached this agreement with TCL for a strategic partnership,” says Kimio Maki, Representative Director, President and CEO, Sony Corporation. “By combining both companies’ expertise, we aim to create new customer value in the home entertainment field, delivering even more captivating audio and visual experiences to customers worldwide.”
Adds DU Juan, Chairperson, TCL Electronics Holdings Limited: “We believe that this strategic partnership with Sony represents a unique opportunity to combine the strengths of Sony and TCL, creating a powerful platform for sustainable growth. Through strategic business complementarity, technology and know-how sharing, and operational integration, we expect to elevate our brand value, achieve greater scale, and optimize the supply chain in order to deliver superior products and services to our customers.”