Sony to hand over control of TV business to China

Another prestigious company wants to divest its TV business. The Japanese company Sony and TCL from China have signed a letter of intent to this effect, which is expected to result in a binding agreement by March 2026. The goal is a joint venture that will take over Sony's business with televisions and home entertainment equipment, such as sound systems, under TCL's control.

TCL is to receive 51 percent of the shares for this purpose, and Sony 49 percent. The newly founded company is expected to commence operations in April 2027, provided that the supervisory authorities approve the agreement. Smart TVs and home entertainment products will continue to be sold under the Sony and Bravia brand names. Distribution is planned worldwide.

Brand Name in Focus

The partners emphasize that it is about Sony's brand value and “operational expertise including supply chain management.” TCL is to contribute its “display technology, global scale advantages, industrial footprint, end-to-end cost efficiency, and vertical supply chain strength.” This means that TCL will be primarily responsible for production in the future, especially for smart TVs.

TCL is the world's second-largest TV manufacturer after Samsung and has grown significantly in recent years. TCL's subsidiary China Star Optoelectronics Technology (CSOT) manufactures panels for Liquid Crystal Displays (LCDs) itself, which are likely to be used primarily in new Sony models. Previously, Sony relied on various suppliers, including BOE, HKC, but also CSOT for LCDs.

For organic types, OLED panels from LG and Samsung are used, which TCL also purchases so far. Although CSOT is experimenting with printed OLED displays, it does not produce them in series. Therefore, nothing is likely to change quickly regarding supplies from LG and Samsung.

Fewer TV Manufacturers

Philips' departure from the TV market also began with a joint venture, founded in 2011 with TP Vision from Hong Kong. Today, Philips operates as a pure brand. Similarly, the former traditional German manufacturer Grundig is now only a brand for third-party companies, which is set to disappear this year.

(mma)