Visitors to the CES technology show earlier in January perhaps wondered why Sony didn’t have a presence. Now they know. Sony is to form a joint-venture with Chinese rival TCL to take over its TV business. TCL will own 51 per cent of the business, with Sony taking a back seat with 49 per cent.

The new business will operate globally, handling every aspect of Sony’s TV business, from product development to design, manufacturing and sales.

The news has surprised the industry. Sony has been a leading company in research and development for 3D, 4K and even 8K televisions, and its Bravia range is considered to be at the ‘very high end’ of the market and priced accordingly.

TCL Technology Group Corp is a Chinese partially state-owned electronics company headquartered in Huizhou, Guangdong province. TCL develops, manufactures, and sells consumer electronics such as television sets, mobile phones, air conditioners, washing machines, refrigerators and small electrical appliances.

The deal includes Sony’s aforementioned Bravia brand and home audio kit such as sound-bars and speakers. Those products will continue to be sold under the ‘Sony’ and ‘Bravia’ brand names, though most expect to see the JV using a lot of TCL’s technology going forward, including displays made by TCL CSOT, which already supplies LCD panels to the Japanese firm.

It is not as yet known whether the planned move includes Sony’s Projection division or whether elements of Sony’s Professional brands will be included. Other questions regarding Sony’s ear-buds and headphones remain.

The deal is subject to regulatory approvals.

“At this stage, the announcement reflects an initial memorandum of understanding, and further details are still under discussion,” said the companies. “We will communicate further at the appropriate timing when there is confirmed information to share.”

“We are pleased to have reached this agreement with TCL for a strategic partnership,” commented Sony Representative Director, President and Chief Executive Kimio Maki. “By combining both companies’ expertise, we aim to create new customer value in the home entertainment field, delivering even more captivating audio and visual experiences to customers worldwide.”

DU Juan, Chairperson, TCL Electronics Holdings, added: “We believe that this strategic partnership with Sony represents a unique opportunity to combine the strengths of Sony and TCL, creating a powerful platform for sustainable growth. Through strategic business complementarity, technology and know-how sharing, and operational integration, we expect to elevate our brand value, achieve greater scale, and optimize the supply chain in order to deliver superior products and services to our customers.”

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Categories: Articles, Business, Equipment, Joint Venture, UHD, Ultra-HD/4K

Tags: bravia, Sony, TCL, TVs