Sony (SONY.US) Close to Selling Majority Stake in Home Entertainment Business to TCL, Deal Valuation Could Reach $1 Billion

Reuters Finance APP has learned that, according to informed sources, Sony (SONY.US) is close to reaching a binding agreement to sell a majority stake in its home entertainment business to Chinese competitor TCL Electronics Holdings Limited, with the deal valued at approximately $1 billion.

Sources said negotiations have made progress and hope to announce the deal as early as this month. They also stated that although negotiations are in the late stages, no final decision has been made. Representatives from Sony and TCL said both companies are continuing discussions to reach a final agreement, and an announcement will be made as soon as it is finalized.

In January this year, Sony and TCL announced plans to establish a joint venture for Sony’s home entertainment business, including its Bravia TV brand. According to the memorandum of understanding, Sony will hold a 49% stake in the joint venture, while TCL will hold the remaining 51%. The new joint venture is expected to begin operations in April 2027, producing TV products under the Sony and Bravia brands that use TCL display technology.

In recent years, Sony has focused on expanding its intellectual property portfolio—including anime, live-action films, music, and sports broadcasting—while streamlining its consumer electronics business. As one of China’s oldest and largest electronics groups, TCL has been dedicated to building a large overseas presence for many years.

Data shows that Sony’s stock listed in Tokyo has fallen 21% this year, with a market value of $123 billion; meanwhile, TCL Electronics has risen about 4% on the Hong Kong stock market, with a market value of $3.5 billion.