Sony has officially announced that it will enter a “strategic partnership” with Chinese TV manufacturer TCL in the home entertainment space. The two companies have signed a Memorandum of Understanding under which the Japanese electronics giant will sell a 51% stake in its home entertainment business to TCL, while retaining the remaining 49%.
The parties involved will execute a “definitive binding agreement by the end of March 2026”. Moreover, the company expects the new operating structure to take effect in April 2027, once the parties meet the relevant regulatory approvals and other customary conditions.
The combined business will sell Sony- and BRAVIA-branded TVs while using TCL’s display technology. Additionally, the deal will also employ Sony’s picture and audio technology, supply chain management, and other things. Outside of its display, TCL will contribute its vertical supply chain strength, global scale advantages, industrial footprint, and end-to-end cost efficiency to the cause.
“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,” Kimio Maki, Representative Director, President and CEO of Sony Corporation said in the statement. “This strategic partnership with Sony represents a unique opportunity to combine the strengths of Sony and TCL, creating a powerful platform for sustainable growth,” DU Juan, Chairperson of TCL Electronics Holdings Limited, added.
The Edge noted that TCL has been seeking to expand its influence overseas and, through this deal, aims to leverage Sony’s branding and technical expertise to support its growth. While Sony has thrived in areas such as film, music, audio, among other things, it—along with other Japanese companies—has lost ground in the TV market to Chinese and Korean competitors, with brands such as Toshiba, Hitachi, Mitsubishi, and Pioneer having exited the TV market altogether.
A major reason why Sony and its BRAVIA sub-brand have survived is because of their position as a luxury item and that customers are willing to pay extra for premium picture and sound quality. Even so, some could interpret this joint venture as a sign that the Japanese electronics giant is beginning to feel increasing pressure from foreign rivals and is seeking ways to remain competitive. However, we stress that this is just an interpretation and is more of an analysis rather than a statement of fact.
(Source: Sony [press release], The Edge Malaysia)
