(April 1): TCL Electronics Holdings Ltd agreed to buy a majority stake in Sony Group Corp’s global home entertainment business, giving a lift to the Chinese company’s expansion overseas.
TCL will pay 75.4 billion yen for a 51% stake in a new joint venture that will hold Sony’s home entertainment business including Bravia televisions, according to a statement Tuesday, confirming an earlier Bloomberg News report. Sony will retain a 49% stake in the business, which includes research and development, design, manufacturing and product sales, as well as home audio equipment.
As part of the strategic partnership, TCL will buy the manufacturing subsidiary Sony EMCS (Malaysia) Sdn, or SOEM, according to the statement. TCL will also continue to negotiate a potential purchase of all or part of Sony’s Chinese manufacturing business Shanghai Suoguang Visual Products Co, known as SSVE.
The enterprise value of the businesses included in the JV and the SOEM unit but excluding the SSVE business is 102.8 billion yen. The final amount will be determined by adjustments for net debt and working capital when the transaction closes.
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 push overseas.
The companies said in January they intended to set up a JV for Sony’s home entertainment business. The venture will begin operations in April 2027, making TVs under the Sony and Bravia names but using TCL’s display technology.
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TCL rallied nearly 13% Wednesday morning, taking its gain this year to 38% and a market value of US$4.6 billion. Sony rose as much as 5.3% in Tokyo, the most since Feb 27. That trimmed its 2026 loss to 16% and gives the company a market value of US$131 billion.
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