The strategic partnership between Sony Corporation and TCL Electronics Holdings Limited is official. Following a memorandum of understanding announced in January, the two companies officially announced the partnership on March 31. While it primarily concerns home entertainment products, there is a Pro AV element as well.
Under the partnership, Sony will establish a wholly owned subsidiary for its home entertainment business, with TCL holding 51% and Sony holding 49% of the shares. The new company, BRAVIA Inc., will succeed to Sony's home entertainment business. While this includes consumer TVs (BRAVIA), home audio equipment, and more, B2B flat panel displays (B2B BRAVIA) and B2B LED displays are also part of the mix.
The new company will be responsible for product development and design, manufacturing, sales and logistics, and customer service, and is expected to operate the integrated business globally. As part of the partnership, 100% of the equity in Sony's subsidiary, Sony EMCS (SOEM), which is responsible for the manufacturing function of Sony's home entertainment products, will be transferred to TCL. However, transfer of all or part of the equity in another Sony manufacturing subsidiary, Shanghai Suoguang Visual Products (SSVE), is still under discussion.
Completion of the transactions under this partnership is subject to regulatory approvals and other conditions, with the new company expected to commence operations in April 2027. BRAVIA Inc. will be headquartered in Sony’s Osaki office in Tokyo. The products under the new company are expected to carry the globally recognized “Sony” and “BRAVIA” names.
