Sony gives TCL control over its Bravia TV business in new joint venture
The two companies are joining forces
📺 Sony and TCL have announced a joint venture to spin off the former’s TV business
✍️ They’ve signed a non-binding agreement with TCL taking 51 percent and Sony taking 49 percent
🤞 Sony’s picture and audio quality combined with TCL’s displays, cost efficiency and supply chain should benefit both companies
📆 If all goes to plan, we could see the new company operating by April 2027
In a very surprising move, Sony has announced that it intends to give TCL control over its Bravia TV business in a new joint venture wiuth the Chinese company.
As per a joint press release, the two firms have signed a non-binding agreement for Sony’s home entertainment business, with TCL holding a 51 percent stake in the new venture, and Sony holding 49 percent.
It seems that TCL is targeting a move upwards into the more premium television sector after finding its feet and making a name for itself with more affordable sets in recent years.
Sony and TCL are aiming to finalize a binding agreement by the end of March, with the new company operating from April 2027. Of course, that’s subject to regulatory approvals and other partnership conditions.
If this deal goes through, it would mark the end of an era for Sony’s TV business, although it could end up being a positive one, combining Sony’s image processing and TCL’s innovation in theoretically cheaper ‘Bravia’ branded screens.
The new joint firm is expected to retain “Sony” and “Bravia” branding, and will handle global operations for everything from product development and design to manufacturing, sales, and logistics for TVs and AV equipment.
A potentially potent partnership
The press release mentions the intentions of the joint firm is to “advance its business by leveraging Sony’s high-quality picture and audio technology cultivated over the years, brand value and operational expertize 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.” In essence, the best of both worlds.
Moreover, Sony’s CEO, Kimio Maki, notes in the press release that combining the two companies will allow Sony and TCL to “create new customer value in the home entertainment field, delivering even more captivating audio and visual experiences to customers worldwide.”
TCL’s chairperson DU Juan added that, thanks to this new venture, TCL expects “to elevate our brand value, achieve greater scale, and optimize the supply chain in order to deliver superior products and services to our customers.”
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Reece Bithrey is a journalist with bylines for Trusted Reviews, Digital Foundry, PC Gamer, TechRadar and more. He also has his own blog, UNTITLED, and graduated from the University of Leeds with a degree in International History and Politics in 2023.