Chinese TV and entertainment company TCL will be taking over the majority of Sony’s TV segment through a joint venture company to be formed between the two firms, as per an official announcement on Tuesday.
TCL will be owning 51% of the newly formed company.
“The new company plans to advance its business by leveraging Sony’s high-quality picture and audio technology cultivated over the years, brand value and operational expertise including supply chain management, while utilizing TCL’s advanced display technology, global scale advantages, industrial footprint, end-to-end cost efficiency, and vertical supply chain strength,” read the official statement.
The Japanese company—known for its large stakes in gaming, music, entertainment, and image sensing solutions—will be spinning off its TV segment after discontinuing its operations in financial services last year.
The Sony and BRAVIA brands will be used for all new TVs and domestic audio equipment produced by the new company, for which operations are formally expected to start by April 2027, with formal discussions to close the deal slated to start in March this year.
In its latest earnings report (Q2 FY2025), the segment under which Sony’s TV business falls—Entertainment, Technology, and Services—showed a 7% decrease in sales from Q2 2024. Sales for the quarter were 575.7 billion yen.
The company attributed the dip in performance to Trump tariffs and a decrease in sales of its display products, which include the Bravia brand’s full range of LED televisions, including OLED and mini LED.
Shares of Sony were priced at 3,736 Japanese yen at the time of writing, down by 1.16%.