Japan’s Sony Corp announced on Tuesday that it has reached a preliminary agreement with China’s TCL Electronics Holdings Ltd to form a joint venture that will take over Sony’s home entertainment business, marking a move toward closer strategic cooperation in the sector.
Under a memorandum of understanding, TCL will hold a 51 per cent stake in the proposed venture, while Sony will retain the remaining 49 per cent. The joint company will operate globally across the entire value chain, including product development, design, manufacturing, sales, logistics and customer service. Its portfolio will cover televisions and home audio products.
Sony and TCL said they aim to finalise a legally binding agreement by the end of March. Subject to regulatory approvals, the new venture is expected to commence operations in April 2027.
TCL Electronics Chairwoman Du Juan said the partnership would allow both companies to combine their strengths to drive future growth. “We firmly believe that this strategic cooperation with Sony presents an excellent opportunity for both sides to integrate their strengths and support further business growth,” she said.
According to the companies, the venture will leverage Sony’s expertise in audio-visual technologies, strong brand value, and experience in operations and supply chain management, alongside TCL’s advanced display technologies, global scale, vertically integrated supply chain and cost efficiencies.