Sony Bravia AH8 4K HDR smart TV.
Credit: Sony India
In a surprising move, Japanese consumer electronics major Sony has signed a Memorandum of Understanding (MoU) with TCL to transfer its majority stake in the entertainment business.
In the joint venture project, TCL will hold 51 per cent and Sony 49 per cent of its shares in Sony's home entertainment business.
"We are pleased to have reached this agreement with TCL for a strategic partnership. 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," said Kimio Maki, Representative Director, President and CEO, Sony Corporation.
The pact covers the company's global operation, handling of the full process from product development and design to manufacturing, sales, logistics, and customer service for products including BRAVIA televisions and home audio equipment.
"We believe that this strategic partnership with Sony represents a unique opportunity to combine the strengths of Sony and TCL, creating a powerful platform for sustainable growth. Through strategic business complementarity, technology and know-how sharing, and operational integration, we expect to elevate our brand value, achieve greater scale, and optimise the supply chain in order to deliver superior products and services to our customers," said DU Juan, Chairperson, TCL Electronics Holdings Limited.
Sony and TCL are expected to complete the definitive binding agreements by the end of March 2026.
Depending on agreements, approvals from relevant regulatory agencies and other conditions, the new JV company is expected to commence its operations in April 2027.
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