Japan's Sony exits TV manufacturing control with 51% stake sale to China's TCL

Sony Group Corp. is spinning off control of its home entertainment business, including its flagship Bravia television brand, to Chinese electronics maker TCL Electronics Holdings Ltd., as the Japanese conglomerate accelerates its retreat from consumer hardware.

The PlayStation maker will sell a 51% stake in its home entertainment arm to TCL, according to a Bloomberg report on Tuesday. The move marks a decisive shift in Sony’s long-standing television business.

Tokyo-based Sony has increasingly prioritised the expansion of its intellectual property portfolio across anime, live-action films, music and sports broadcasting, while scaling back its presence in consumer electronics. Over the years, the company has exited or shuttered operations in personal computers, tablets, portable media players and lower-end television categories.

According to the report, Sony and TCL plan to establish a joint venture that will begin operations in April 2027. The venture will manufacture televisions carrying the Sony and Bravia brands, while relying on TCL’s display technology.

TCL, one of China’s oldest and largest electronics conglomerates, has grown into a major budget television brand in the US market and has previously licensed legacy brands such as BlackBerry and Alcatel for mobile devices.

Japanese television makers have steadily lost ground to Chinese and South Korean rivals. Companies including Toshiba Corp., Hitachi Ltd., Mitsubishi Electric Corp. and Pioneer have exited the TV business entirely, while others such as Panasonic Holdings Corp. and Sharp Corp. have de-emphasised the segment in their growth strategies.

Sony’s Bravia brand has survived largely due to its premium positioning, catering to consumers willing to pay more for high-end picture quality and sound performance, the news agency added.