Sony nears US$1 billion home entertainment deal with TCL: sources

[TOKYO] Sony Group is nearing a binding agreement to sell a majority stake in its home entertainment business to Chinese rival TCL Electronics Holdings in a deal that may be valued at about US$1 billion, according to people familiar with the matter.

The companies have made progress on their negotiations and are seeking 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.

Representatives for Sony and TCL said the companies are continuing discussions towards a definitive agreement and that an announcement would be made promptly once finalised.

Sony and TCL announced in January their intention to set up a joint venture for the Japanese company’s home entertainment business, including its Bravia television brand. Under the memorandum of understanding, Sony would hold 49 per cent of the venture and TCL the remaining 51 per cent.

The new joint venture will begin operations in April 2027 and produce televisions sets carrying the Sony and Bravia names but using TCL’s display technology, according to the January statement.

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.

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Sony to cede control of Bravia TVs to China’s TCL Electronics

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Sony’s shares have dropped 21 per cent in Tokyo this year, giving the company a market value of US$123 billion. TCL is up about 4 per cent in Hong Kong in the same period, for a value of US$3.5 billion. BLOOMBERG