Sony Corporation (“Sony”) and TCL Electronics Holdings Limited (together with its subsidiaries, “TCL”) have announced that they have now 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.
Under the partnership, Sony will establish a wholly owned subsidiary (the “Preparatory Company”) to assume its home entertainment business, and TCL will subscribe to a portion of the Preparatory Company’s shares, forming a joint venture (the “New Company”) with TCL holding 51 per cent and Sony holding 49 per cent of the shares.
The new company will succeed to Sony’s home entertainment business, which includes product development and design, manufacturing, sales and logistics, and customer service for products such as Consumer TVs (BRAVIA), B2B Flat Panel Displays (B2B BRAVIA), B2B LED Displays, projectors, and home audio equipment such as home theatre systems and audio components. It is expected to operate this integrated business globally.
Newly-appointed Representative Director, President and CEO, Kenji Tanaka, commented: “I am very pleased that we have signed definitive agreements with TCL for a strategic partnership in the home entertainment field today, gaining an excellent partner. Through the new company, we will strive to provide new customer value to a global audience and achieve further growth in the home entertainment field.”
Juan Du, Chairperson, TCL Electronics Holdings Limited, commented: “We are filled with anticipation regarding our future strategic partnership with Sony in the home entertainment field. Through this collaboration, we plan to jointly leverage our respective core strengths in branding, display technology, sales channels, supply chains, etc. Together, we aim to drive the global development and premiumisation of the New Company, delivering superior products and services to consumers worldwide.”
Kazuo Kii, who is now Vice Chairman of Sony Corporation, said: “I am excited to embark on this new challenge in the home entertainment field. Both Sony and TCL have exceptional strengths. At the New Company, we will bring together this expertise, dedicate our full efforts to developing innovative products that exceed customer expectations worldwide, and aim to lead the market through operational excellence.”
As part of the partnership, 100 per cent of the equity in Sony EMCS (Malaysia) Sdn. Bhd.(“SOEM”), a subsidiary responsible for the manufacturing function of Sony’s home entertainment products, will be transferred to TCL. Regarding Shanghai Suoguang Visual Products Co., Ltd. (“SSVE”), also a subsidiary responsible for the manufacturing function of Sony’s home entertainment products, the relevant parties expect to continue discussions regarding the transfer of all or part of the equity in SSVE held by Sony (China) Limited to TCL.
The sum of the enterprise value of the businesses to be transferred to the New Company and the enterprise value of SOEM (“Enterprise Value”) is approximately 102.8 billion yen (equivalent to approximately HK$5.2 billion* (£49m)). The consideration payable by TCL is assumed to be approximately 75.4 billion yen (equivalent to approximately HK$3.8 billion* (£36m)) at present, calculated based on the equity value derived from the above Enterprise Value with adjustments for certain net debt, working capital, and other adjustments, and prorated according to TCL’s ownership ratios of the New Company and SOEM.
The final amount will be determined following further adjustments for certain net debt and working capital at the timing of closing. For the avoidance of doubt, the Enterprise Value does not include the enterprise value of SSVE, which is currently under discussion. The completion of transactions under this partnership is subject to obtaining relevant regulatory approvals and other conditions, with the New Company expected to commence operations in April 2027.
The New Company’s products are expected to carry the globally recognised “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.
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