TOKYO: Sony Group Corp is spinning off control of its home entertainment business, including the flagship Bravia television brand, to Chinese rival TCL Electronics Holdings Ltd, the latest Japanese company to cut exposure in the low-margin segment.
The PlayStation maker said it will sell a 51% stake in its home entertainment arm to TCL. The two companies plan to set up a joint venture that will begin operations in April 2027 to produce televisions carrying the Sony and Bravia names but use TCL’s display technology, according to a statement.
Shares of TCL soared more than 16% in Hong Kong, notching their biggest intraday gain since April 2025. Sony’s stock dipped 0.9% in Tokyo yesterday.
TCL, one of China’s oldest and largest electronics conglomerates, has for years tried to forge a major overseas business.
It’s grown into a major budget TV name in the United States and had previously licensed the BlackBerry and Alcatel brands for mobile devices.
This year, it took over one of the most prominent display booths at the CES 2026 conference in Las Vegas, supplanting Samsung Electronics Co, and is now seeking to harness the Sony brand and technical expertise in its quest.
Tokyo-based Sony has focused on expanding its portfolio of intellectual property assets – anime, live-action film, music and sports broadcasts – while trimming its presence in consumer electronics.
Faced with declining margins and growing price competition, it’s already sold off or shuttered its operations in PCs, tablets and portable media players as well as low-end TVs, despite the global recognition of the Sony brand.
Analysts for Bloomberg said, “Sony Group’s decision to spin off control of its home-entertainment business, including televisions, to TCL Electronics might signal wider restructuring and more focus on the most profitable segments at the Japanese firm.” — Bloomberg
