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Sony is close to reaching a definitive agreement to sell a majority stake in its home entertainment business to TCL, according to a Bloomberg report. Negotiations between the two companies are at an advanced stage, but a final decision will be announced by the end of this month with a transaction value estimated at around $1 billion.
In January, Sony and TCL announced the formation of a joint venture to produce Sony home entertainment products. Through this partnership, TCL will hold 51% of the shares and the remaining 49% will be held by Sony. Sony will no longer manufacture its own televisions under the Sony brand and Bravia will use TCL display technology from now on. The new company will begin operations in April 2027.
The new company will leverage Sony's high-quality picture and audio technology while leveraging TCL's advanced display technology, global scale, industry footprint, cost efficiency and supply chain strength.
This will bring an end to Sony's history of producing its own audio-visual equipment since the first TR-55 radio was sold in 1955. Last year, Sony also stopped manufacturing its own smartphones, with all Xperia devices being manufactured by OEMs. It got off to a rocky start with the first Xperia 1 VIII line encountering various issues when it was first received by buyers.
