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In a landmark shift for the consumer electronics industry, Sony has announced plans to spin off its TV business into a new joint venture with Chinese giant TCL.
The move marks the end of an era for the Japanese firm, which has been a dominant force in the television market for decades.
The two companies have signed a memorandum of understanding to establish a joint operation where TCL will hold a majority 51 percent stake, with Sony retaining the remaining 49 percent. The new entity is expected to begin operations in April 2027, following the finalization of binding agreements anticipated by March 2026.
Despite the shift in ownership, the “Sony” and “Bravia” labels will not disappear. The joint venture plans to continue using these iconic brands, leveraging Sony’s high-quality picture and audio processing technology, alongside TCL’s manufacturing scale and display expertise.
“The new company plans to advance its business by leveraging Sony’s high-quality picture and audio technology cultivated over the years,” Sony stated, while also utilizing TCL’s “vertical supply chain strength” and “end-to-end cost efficiency”.
Strategic Motives
Industry analysts suggest the move is a response to a stagnating TV market, with global shipments predicted to grow by less than one percent in 2026. Sony’s market share has recently trailed behind competitors like Xiaomi, leading to speculation that the company prefers to reallocate its resources rather than compete in a low-margin, slow-growth sector.
For TCL, the partnership represents an opportunity to elevate its brand into the premium market. By managing everything from product development and design to manufacturing and customer service for Sony-branded products, TCL can expand its global reach and move beyond competing primarily on price.
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