The Sony Group has announced that it will sell off a big chunk of its television business by establishing a joint venture with TCL Group. If you are not familiar with TCL, it is China’s major television manufacturer. TCL will hold a 51% stake, while Sony Corporation will hold 49%.
The whole reason behind this is that the Sony Group wants to focus on its entertainment businesses, including music, film, and gaming.
TCL is the world’s second-largest television manufacturer. It will now effectively handle everything from development to design, as well as the manufacturing and sales of televisions and home audio equipment. Despite TCL owning 51%, Sony and the Bravia branding will still be used on televisions.
Sony’s television business has been in decline for many years now, and their global market share is less than 2%. Korean and Chinese companies now dominate the TV manufacturing market.
Here is what they said in a press release:
Today, Sony Corporation (hereinafter referred to as Sony) and TCL Electronics Holdings Limited (hereinafter referred to as TCL) have reached a basic agreement to proceed with discussions and consideration towards a strategic alliance in the home entertainment sector.
Specifically, the two companies have signed a basic agreement confirming their intention to establish a joint venture company. This company will succeed Sony’s home entertainment business, with TCL holding a 51% stake and Sony holding a 49% stake. The joint venture will globally operate an integrated business encompassing the entire value chain for products such as televisions and home audio equipment, from product development and design through to manufacturing, sales, logistics, and customer service. The two companies will engage in discussions aimed at concluding a legally binding definitive agreement regarding this partnership by the end of March 2026. Subject to the execution of the definitive agreement and obtaining necessary approvals from relevant authorities, the new company anticipates commencing operations in April 2027.
The new company will build upon Sony’s long-established high-quality picture and sound technologies, brand strength, and operational management capabilities in areas such as the supply chain. It will also leverage TCL’s strengths in advanced display technologies, its global business footprint, comprehensive cost competitiveness, and vertically integrated supply chain. The new company’s products will bear the globally recognised “Sony” and “BRAVIA®” brand names, aiming to create new customer value through products such as televisions and home audio systems.
The global large-screen television market continues to grow, driven by advances in screen resolution and ultra-large sizes, diversification of viewing styles due to the proliferation of OTT and video-sharing platforms, and enhanced user experiences through evolving smart features. Within this market environment, the new company will create innovative products that meet the expectations of customers worldwide and aims for further business growth through exceptional operational excellence. Furthermore, Sony and TCL will provide strong support for the sustainable growth of the new company.
