Sony has announced plans to spin off its TV hardware business, shifting it to a new joint venture with TCL. The two companies have signed a non-binding agreement for Sony’s home entertainment business, with TCL set to hold a 51 percent stake in the new venture, and Sony holding 49 percent.
The new company is expected to retain “Sony” and “Bravia” branding for its future products, and will handle global operations from product development and design to manufacturing, sales, and logistics for TVs and home audio equipment. Sony says that the partnership will leverage Sony’s picture and audio tech, brand value, supply chain management, and other operational expertise. This will combine with TCL’s own display technology, vertical supply chain strength, global market presence, and end-to-end cost efficiency.
In the announcement, Sony CEO Kimio Maki says that combining the two companies will allow Sony and TCL to “create new customer value in the home entertainment field, delivering even more captivating audio and visual experiences to customers worldwide.” TCL chairperson DU Juan says that under the new venture, TCL expects “to elevate our brand value, achieve greater scale, and optimize the supply chain in order to deliver superior products and services to our customers.”
One thing’s for sure: the prospect of a cheaper Bravia TV built on top of excellent Sony image processing and leading TCL tech is certainly compelling.