Sony's TV empire is set to be transformed into a joint venture with Chinese tech giant TCL, marking the end of an era for Sony's beloved Bravia brand. Under the new partnership, TCL will hold a 51 percent stake in the venture while Sony will retain a 49 percent share. The joint company, dubbed "Sony-TCL," will assume control over Sony's home entertainment business and oversee global operations.
As part of the deal, TCL is poised to elevate its premium television offerings, bolstered by its innovative technology advancements over the past few years. Conversely, this partnership could potentially see a price drop in Bravia TVs as the companies combine their resources, allowing for more efficient supply chain management and lower costs.
Sony's home entertainment business has been steadily declining in recent years, with a 21% year-on-year drop in revenue reported last quarter. This strategic move appears to be Sony's attempt to revitalize its dwindling TV sales, while TCL seizes the opportunity to strengthen its position in the premium television market.
With regulatory approvals and partnership conditions still pending, the new joint company is expected to finalize binding agreements by March 2026 and officially commence operations in April 2027. In preparation for this transition, Sony's current TV business will be spun off into a standalone joint venture with TCL.
As part of the deal, TCL is poised to elevate its premium television offerings, bolstered by its innovative technology advancements over the past few years. Conversely, this partnership could potentially see a price drop in Bravia TVs as the companies combine their resources, allowing for more efficient supply chain management and lower costs.
Sony's home entertainment business has been steadily declining in recent years, with a 21% year-on-year drop in revenue reported last quarter. This strategic move appears to be Sony's attempt to revitalize its dwindling TV sales, while TCL seizes the opportunity to strengthen its position in the premium television market.
With regulatory approvals and partnership conditions still pending, the new joint company is expected to finalize binding agreements by March 2026 and officially commence operations in April 2027. In preparation for this transition, Sony's current TV business will be spun off into a standalone joint venture with TCL.