In a big change for the TV and audio industry, Sony is letting China’s TCL take the lead in its home entertainment business. The two companies have agreed in principle to form a joint venture that would run all of Sony’s home entertainment operations.
Under the agreement, TCL will take a controlling 51 percent stake in the venture, while Sony will retain the remaining 49 percent. The yet-to-be-named company will operate worldwide and oversee the full business chain, spanning product design and manufacturing through logistics, sales, and customer support for Sony’s televisions and home audio products. Devices will continue to be sold under the Sony and Bravia brands.
The deal is designed to play to each company’s strengths. Sony brings decades of experience in picture and audio engineering, along with a premium brand and deep supply chain expertise. TCL, meanwhile, adds advanced display technology, global scale, and the cost advantages of a vertically integrated manufacturing operation.
The decision comes in an industry defined by relentless price pressure. Over the past 25 years, television prices have dropped faster than almost any other consumer electronics category, pushed lower by manufacturing advances, massive economies of scale, and fierce competition among brands.
For Sony, the transaction marks another step in a long-running consolidation of its consumer electronics footprint. The company has systematically withdrawn from multiple hardware categories, selling its Vaio PC unit in 2014, divesting its lithium-ion battery business in 2017, and discontinuing Blu-ray media production and its 8K TV line in 2025.
Assuming no unexpected hurdles, Sony and TCL plan to sign definitive, binding agreements by the end of March 2026. Pending regulatory approvals and other customary closing conditions, the joint venture is expected to begin operating in April 2027.
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