Sony’s iconic TV hardware business will soon be part of a joint venture with TCL after both companies agreed to move forward with discussions and consideration for a strategic partnership in the home entertainment field. The news has sent shockwaves across the world. It’s understandable that Sony Bravia fans will be freaking out today with the news that TCL will hold a 51% stake in the new venture, 49% for Sony.
Sony’s status as the world’s best TV maker, along with other Japanese companies like Panasonic, can’t be denied. It’s never been about quantity – it’s always been quality – hence the Sony tax. But quantity plus value is now becoming more important.
But TCL, a Chinese company, is at the cutting edge of television innovation. If you look at some of its latest technical achievements, you’ll be impressed. TCL is also surging in popularity, and this is something Sony wants because it needs more sales in a super competitive industry.
“We are pleased to have reached this agreement with TCL for a strategic partnership,” said Kimio Maki, Representative Director, President and CEO, Sony Corporation.
“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.”
This may be the best chance to keep the Sony TV brand alive, long term. It would be ridiculous to suggest that TCL would eventually consume the brand because it’s far too valuable. The new company’s products are expected to carry the globally recognised “Sony” name and “BRAVIA™” name, aiming to create new customer value through these branded products such as TVs and home audio equipment. The joint venture plans to leverage Sony’s expertise while utilising TCL’s advanced display technology, global scale advantages, industrial footprint, end-to-end cost efficiency, and vertical supply chain strength.
“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,” said DU Juan, Chairperson, TCL Electronics Holdings Limited.
“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.”
Sony and TCL are looking to finalise their agreement by the end of March 2026. If approved, the new company is expected to commence its operations in April 2027.
