Sony spins off TV business in new deal giving TCL 51% stake

Sony is spinning off its TV business with a new deal with TCL, signaling the end of an era for Sony electronics.

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Today, Sony announced a landmark deal that would effectively see the Japanese company step out of TV manufacturing. As part of the deal, Sony and TCL will form a new company with the majority 51% stake belonging to TCL, and Sony taking a 49% stake.

The new company will design, produce, and ship next-gen home entertainment audio and visual technology, including TV sets. The new line of TVs will retain both Sony's name and the Bravia branding, with the specifics of the deal to be ironed out by March 2026. Sony and TCL expected the new unit to start operations in April 2027. Based on the vocabulary used in the announcement, TCL and Sony may be focusing their new products on the higher-end of the tech spectrum.

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Sony's Bravia TVs have been somewhat of a hard sell throughout the years, and Sony's Entertainment Technology & Services segment, which the Bravia TV line belongs to, only had a 7% profit margin last year in FY24.

Check below for more info from the press release:

The new company plans to advance its business by leveraging Sonyʼs high-quality picture and audio technology cultivated over the years, brand value and operational expertise including supply chain management, while utilizing TCLʼs advanced display technology, global scale advantages, industrial footprint, end-to-end cost efficiency, and vertical supply chain strength. The new companyʼs products are expected to carry the globally recognized "Sony" name and "BRAVIA™" name, aiming to create new customer value through these branded products such as TVs and home audio equipment.

The global market for large TV products continues to expand, driven by trends such as diversified viewing styles through growing OTT(*) and video-sharing platforms, enhanced user experiences enabled by the evolution of smart features, as well as adoption of higher resolution and larger displays. In this market environment, the new company aims to create innovative products that meet the expectations of customers worldwide and achieve further business growth through outstanding operational excellence. Sony and TCL are committed to strongly supporting the sustainable growth of the new company.