Sony to Give Up Control of High-End TVs as TCL Seeks Dominance in Global Market
In a significant move, Sony Corporation is set to cede control over its premium Bravia TV lineup to rival company TCL Technology. Under the terms of the partnership, TCL will take majority ownership of the high-end TVs, while Sony will retain a 49% stake.
The joint venture aims to create a new entity that will manage the production and sales of both televisions and home audio equipment globally. Despite maintaining its iconic Bravia brand, the TVs will rely on TCL display technology for their displays.
The deal has been made in response to increasing competition from Chinese firms like Hisense and Samsung, as well as South Korean companies LG and Samsung. The TV industry has faced decreasing margins due to cheaper devices and reduced demand for new sets, making it a challenging market to navigate.
Sony, which has been scaling back its electronics business in recent years, will focus on intellectual property such as anime, movies, and gaming consoles, allowing TCL to gain an advantage by leveraging Sony's premium Bravia devices and brand. The joint venture is expected to launch in April 2027, pending regulatory approvals and other conditions.
By partnering with a major player like Sony, TCL is set to strengthen its position in the global TV market, taking advantage of Sony's reputation for high-end products. With this deal, TCL aims to capitalize on Sony's resources while expanding its own presence in the competitive electronics industry.
In a significant move, Sony Corporation is set to cede control over its premium Bravia TV lineup to rival company TCL Technology. Under the terms of the partnership, TCL will take majority ownership of the high-end TVs, while Sony will retain a 49% stake.
The joint venture aims to create a new entity that will manage the production and sales of both televisions and home audio equipment globally. Despite maintaining its iconic Bravia brand, the TVs will rely on TCL display technology for their displays.
The deal has been made in response to increasing competition from Chinese firms like Hisense and Samsung, as well as South Korean companies LG and Samsung. The TV industry has faced decreasing margins due to cheaper devices and reduced demand for new sets, making it a challenging market to navigate.
Sony, which has been scaling back its electronics business in recent years, will focus on intellectual property such as anime, movies, and gaming consoles, allowing TCL to gain an advantage by leveraging Sony's premium Bravia devices and brand. The joint venture is expected to launch in April 2027, pending regulatory approvals and other conditions.
By partnering with a major player like Sony, TCL is set to strengthen its position in the global TV market, taking advantage of Sony's reputation for high-end products. With this deal, TCL aims to capitalize on Sony's resources while expanding its own presence in the competitive electronics industry.