In a joint announcement today, Sony and TCL confirmed they have formally signed the agreement to spin off Sony's TV and AV division to a new joint venture company.
Update: It has been confirmed that the new company will be named BRAVIA, Inc.
The plan was first announced in January and has now been finalized.
- "Sony Corporation and TCL Electronics Holdings Limited today announced that Sony and TCL have entered into legally binding definitive agreements for a strategic partnership in the home entertainment field. This follows the memorandum of understanding announced on January 20, 2026," Sony Corp. and TCL announced today, March 31, 2026.
A $650 million deal
The enterprise value of the new company is 102.8 billion yen (approx. 650 million USD) and TCL will pay Sony 75.4 billion yen (approx. 475 million USD) to take majority ownership of Sony's TV and AV business in a new, still-unnamed joint venture company (51% TCL, 49% Sony).
The joint venture will operate globally, handling everything from product development and design to manufacturing and sales. It will cover Sony TVs, audio products (including home theater), business displays, LED displays and projectors. It is unclear whether disc players are included.
TCL will supply technology components, including display panels and LED backlights, and manufacture the products. As part of the deal, TCL will acquire 100% of Sony EMCS, a subsidiary responsible for manufacturing Sony's home entertainment products. Discussions are ongoing regarding Sony's Shanghai Suoguang Visual Products, which also produces Sony home entertainment products. If acquired, this will increase the final price.
The new company is expected to begin operations in April 2027, pending regulatory approval.
Details still pending
Further specific details are still pending, but FlatpanelsHD sees the partnership as having the potential to reshape the TV market, as TCL is already closing in on Samsung, which has led the TV market for the past 20 years.
The only confirmed detail about the first new products from the joint venture is that they will continue to be sold under the Sony and BRAVIA brands.
- "The New Company's products are expected to carry the globally recognized "Sony" and "BRAVIA™" names, with the aim of creating new customer value through branded products such as TVs and home audio equipment. The New Company will strive to create innovative products that meet the expectations of customers worldwide and achieve further business growth through outstanding operational excellence. In addition, Sony and TCL are committed to strongly supporting the sustainable growth of the New Company," said TCL and Sony.
