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

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