TOKYO: Sony Group Corp is nearing a binding agreement to sell a majority stake in its home entertainment business to Chinese rival TCL Electronics Holdings Ltd in a deal that may be valued at about US$1bil, according to people familiar with the matter.
The companies have made progress in negotiations and seek to announce a transaction as soon as this month, the people said, asking not to be identified because the information is private.
While talks are at an advanced stage, no final decision has been made, the people said.
Sony and TCL representatives said the companies are continuing discussions towards a definitive agreement and an announcement would be made promptly once finalised.
The two companies said in January they intended to set up a joint venture for Sony’s home entertainment business, including its Bravia television brand, with Sony holding 49% and TCL 51%.
The venture will begin operations in April 2027 and make TVs with Sony and Bravia names, but using TCL’s display technology.
Sony has focused on expanding its portfolio of intellectual property assets, anime, live-action film, music and sports broadcasts, while trimming consumer electronics.
TCL, one of China’s oldest and largest electronics conglomerates, has for years tried to forge a major overseas business.
Sony rose as much as 2.6% in Tokyo yesterday, the biggest intraday gain since March 11, before paring the gains. The stock has dropped 20% this year, giving the company a market value of US$124bil.
TCL jumped as much as 3.5% yesterday morning in Hong Kong, also the biggest intraday increase since March 11.
The stock has gained 5% this year, giving TCL a market capitalisation of US$3.5bil. — Bloomberg
