Sony Group has announced that it is spinning off control of its home entertainment business, including its flagship Bravia television brand, to China based TCL Electronics Holdings. This move reflects Sony growing focus on higher margin businesses while reducing its presence in highly competitive and low profit consumer electronics segments.
The company said on Tuesday that it will sell a 51 percent stake in its home entertainment unit to TCL. As part of the deal, both companies will form a joint venture that is expected to begin operations in April 2027. The new entity will manufacture televisions under the Sony and Bravia names, using display technology developed by TCL.
TCL, one of China largest and oldest electronics groups, has been working for years to build a strong global presence. This year, it took over one of the most visible display spaces at the CES 2026 event in Las Vegas, replacing a major rival. The company is now expected to use Sony brand strength and technical expertise to further expand overseas. TCL has already built a strong position as a budget television brand in the United States and has previously licensed well known names such as BlackBerry and Alcatel for mobile devices.
Sony, which is based in Tokyo, has been shifting its strategy toward intellectual property driven businesses. These include anime, live action films, music, and sports broadcasting. At the same time, it has been scaling back in consumer electronics due to falling margins and intense price competition. Over the years, the company has exited or reduced its presence in areas such as personal computers, tablets, portable media players, and lower end televisions.
Many Japanese brands have lost ground in the global television market to Chinese and Korean competitors. Several companies have exited the segment entirely, while others have reduced its role in their long term growth plans.
Bravia televisions remained part of Sony portfolio mainly due to their strong premium positioning. The brand has long been marketed as a way to experience content exactly as creators intended, supported by Sony expertise in picture and sound quality.
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