Sony and TCL sign MoU to form global joint venture for TVs and home audio

Sony and TCL have announced plans to form a new global joint venture in the home entertainment space, marking a major shift in Sony’s TV hardware business. The two companies confirmed today that they have signed a non-binding memorandum of understanding or agreement to explore a partnership that would combine Sony’s audio-visual expertise with TCL’s scale, manufacturing strength, and display technology. If finalised, the move would see Sony spin off its home entertainment hardware business into a new company majority-owned by TCL.

Sony and TCL joint venture details

Under the proposed structure, the joint venture will assume Sony’s home entertainment business, with TCL holding a 51 percent stake and Sony retaining 49 percent. The new company will operate globally and handle the full value chain, including product planning, development and design, manufacturing, sales, logistics, and customer service.

Key points from the announcement:

• Products will include televisions and home audio equipment
• Future products are expected to carry the ‘Sony’ and ‘Bravia’ brand names
• Sony and TCL aim to sign definitive binding agreements by the end of March 2026
• Once the joint venture gets regulatory approvals and other conditions, its operations are expected to begin in April 2027

Sony said the partnership is designed to bring together its strengths in picture and audio processing, brand equity, and operational know-how, including supply chain management. These will be combined with TCL’s advanced display technologies, vertically integrated supply chain, global manufacturing footprint, and cost efficiencies.

The company positions the move as a response to ongoing changes in the global TV market, including rising demand for large-screen televisions, wider adoption of high-resolution panels, and evolving viewing habits driven by OTT platforms, smart TV features, and video-sharing services.

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Commenting on the announcement, Sony Corporation President and CEO Kimio Maki said the partnership would help the company deliver greater value to consumers. He said the combination of Sony and TCL’s expertise would enable the creation of “more captivating audio and visual experiences” for customers worldwide.

Meanwhile, TCL Electronics Chairperson DU Juan described the agreement as a strategic opportunity to build scale, share technologies, operational expertise, optimise supply chain and strengthen competitiveness. This is believed to deliver better products and services globally.

Sony’s TV business has long been known for its image processing and premium positioning, particularly under the Bravia brand. However, the global TV hardware market has become increasingly competitive and margin-sensitive.

For TCL, the partnership signals a further push into the premium TV segment, building on its recent technology-led positioning. For Sony, the move represents a structural shift away from owning TV hardware manufacturing outright, while still retaining influence over product quality, brand direction, and core technologies.

If completed, the joint venture could result in Bravia TVs that combine Sony’s processing and tuning with TCL’s panel innovation and manufacturing scale, potentially reshaping competition in the mid-range and premium TV segments globally.

The agreement is currently non-binding, and the final structure will depend on regulatory approvals and the outcome of ongoing discussions. Let’s see how this pans out.

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