Sony signs definitive agreement with TCL for Bravia TVs

Back in January, Sony and TCL announced the intention to form a joint venture in TVs and home audio equipment, of which TCL would hold a controlling 51% stake. Today, the two companies have signed a definitive agreement for this strategic partnership.

Under this legally binding agreement, Sony will establish a wholly owned subsidiary to assume its home entertainment business, and TCL will subscribe to a portion of this company's shares, with TCL holding 51% and Sony holding 49% of the shares.

The new company will succeed Sony's home entertainment business, including product development and design, manufacturing, sales and logistics, and customer service for Bravia TVs, business-to-business flat panel displays and LED displays, projectors, and home audio equipment such as home theater systems and audio components. The new company will operate this integrated business globally.

TCL will pay Sony JPY 75.4 billion (about $474 million) at present values, but the final amount will be determined following adjustments for certain net debt and working capital when the deal closes. The new company should commence operations in April 2027, after obtaining the relevant regulatory approvals. The new company's products will use the Sony and Bravia names.

Source