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5 Things to Know About Sony’s New Joint Venture With TCL, Including Terms of Deals, Future Plans

5 Things to Know About Sony’s New Joint Venture With TCL, Including Terms of Deals, Future Plans

Sony and TCL plan to begin operations of their new joint venture by April 2027.

Written by Dhruv Raghav, Edited by David Delima | Updated: 21 January 2026 12:03 IST

5 Things to Know About Sony’s New Joint Venture With TCL, Including Terms of Deals, Future Plans

Photo Credit: Bloomberg

Sony and TCL joint venture will sell TVs under the Bravia branding.

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Highlights

The new joint venture will sell home audio products with Sony branding
TCL will own the majority stake in the new joint venture
The deal awaits regulatory approval

Sony is spinning off its home entertainment business, selling the majority stake of its Bravia television division to TCL, the Japanese tech giant announced on Tuesday. Subject to shareholder agreement and further diligence, the two companies will enter a strategic partnership under the new memorandum of agreement (MoU). Sony and TCL expect to execute a definitive binding agreement by the end of March this year. Later, by April 2027, the China-based tech firm and Sony plan to commence operations under the new joint venture, where TCL will hold 51 percent of the company, while Sony will retain a 49 percent stake in the new venture.

The new TCL and Sony joint venture will have global operations, while being responsible for product development, product design, product manufacturing, sales, logistics, and customer service for Sony Bravia TVs and other Sony home audio products, including home theatre systems. While TCL will have the controlling stake in the new business, it will continue to sell products with the Sony and Bravia brandings, which have a greater brand value and are globally recognised.

Additionally, the products that are set to come out of the joint venture will also leverage Sony's picture and audio technologies, along with the operational expertise of the home entertainment division of the Japanese tech giant, including supply chain management. In return, TCL will bring its display technology, manufacturing capacity, “global scale advantages”, bigger industrial presence, higher cost efficiency, and “vertical supply chain strength” to the table.

Here Are 5 Things to Know About Sony's New Joint Venture With TCL

Sony and TCL will enter into a joint venture for the Japanese tech giant's home entertainment business, which is expected to commence operations by April 2027. Sony will continue holding 49 percent of the new venture, while TCL will hold a controlling stake of 51 percent. The new venture will operate globally, selling TVs and other home audio devices under the Bravia and Sony branding. The terms of the deal are planned to be finalised by the end of March this year.
The Chinese tech firm, TCL, will offer its display technology, manufacturing capacity, “global scale advantages”, bigger industrial presence, higher cost efficiency, and “vertical supply chain strength”. Meanwhile, Sony brings its picture and audio technologies, along with its expertise in operations and supply chain management. The Bravia-branded TVs coming out of the new joint venture will utilise Sony's core display technology, while TCL will build on top of the existing systems.
Citing a CLSA research note, AAStocks reports that the new Sony-TCL joint venture will be beneficial for the overall profit growth of TCL, bolstered by Sony's home entertainment division. The profit margins on the products coming out of the venture will be higher, making it easier for TCL to achieve its targets in the future. However, as the deal is yet to be finalised, the research firm reportedly looks forward to the final implementation plan and how things pan out in the future.
After the deal is executed and the new joint venture commences operations in 2027, Sony Electronics will continue manufacturing its PlayStation gaming consoles. Moreover, the Japanese tech giant will also produce Sony Headphones, Sony true wireless stereo (TWS), Alpha Cameras, photography peripherals, camera sensors, and Sony Xperia smartphones.
Sony is not the only tech brand from Japan succumbing to the market headwinds and seeking help from the Chinese competition. Brands like Mitsubishi and Hitachi exited the market several years ago. Software firms appear to be affected similarly. In September 2025, the newswire service Nikkei Asia reported that Japan's PayPay, the online payments platform, will soon integrate China's Tencent-owned WeChat Pay service, allowing customers to execute transactions at select businesses.

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Further reading: Sony Bravia, Sony Home Theatre, Sony Home Entertainment, TCL, Sony

Dhruv Raghav

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Dhruv Raghav is currently working as a Senior Sub Editor at Gadgets360. He has previously covered the North American financial markets as a Headline News Correspondent for a major news agency. After taking a sabbatical to prepare for the Civil Services examination, he returned to journalism to cover tech policy, with a special focus on AI laws and online gaming regulation. Now, he is back in Gadgets360 to write features and edit stories. To unwind, he likes to spend time with his PS5, listening ...More