<\/p>\n
(Yicai) April 1 — Shares of TCL Electronics surged after the Chinese consumer electronics giant said it finalized the deal to take a majority stake in a new joint venture that will control Sony\u2019s home entertainment business\u00a0for a total of JPY75.4 billion (USD475 million).<\/p>\n
TCL Electronics [HKG: 1070] closed up 9\u00a0percent at HKD13.91\u00a0(USD1.77) in Hong Kong today, after earlier gaining as much as 13.7 percent.<\/p>\n
Sony will establish a wholly-owned subsidiary that will take charge of its home entertainment business, and TCL will subscribe to 51 percent\u00a0of the new company\u2019s shares, the partners announced in separate statements yesterday.\u00a0Sony will retain the remaining 49 percent\u00a0of the shares.<\/p>\n
Sony\u2019s home entertainment business includes product development, design, manufacturing, sales, logistics, and customer service for products such as Bravia\u2019s consumer televisions and business-to-business flat panel displays, B2B light-emitting diode displays, projectors, and home audio equipment.<\/p>\n
As part of the deal, TCL will also acquire a 100 percent stake in Sony Emcs Malaysia, which is responsible for the manufacturing of Sony\u2019s home entertainment products, the pair noted, adding that they will continue discussions regarding the transfer of all or part of the equity in Shanghai Suoguang Visual Products, another entity producing Sony home entertainment products.<\/p>\n
Based on the equity value of the above two businesses and the ownership ratios, TCL is expected to pay Sony JPY75.4 billion (USD475 million), but the final amount will be determined after further adjustments for certain net debt and working capital at the time of closing, the two companies pointed out.<\/p>\n
The transaction, which is subject to regulatory approval among other conditions, is expected to be completed by April next year, when the JV is scheduled to commence operations.<\/p>\n
Sony will sign licensing agreements with the new company for patents, proprietary technologies, and brand rights. Under the deals, the JV\u00a0will sell products carrying the globally recognized Sony and Bravia names, aiming to create new customer value. It will also strive to develop innovative products that meet the expectations of customers worldwide and achieve further business growth through outstanding operational excellence.<\/p>\n
The deal also stipulates that Sony has the option to sell all or part of its stake in the new firm at an agreed price on an agreed date to safeguard the rights and interests of minority shareholders.<\/p>\n
\u201cI am very pleased that we have signed definitive agreements with TCL for a strategic partnership in the home entertainment field today, gaining an excellent partner,\u201d\u00a0said Kenji Tanaka, president and chief executive officer of Sony. \u201cThrough the new company, we will strive to provide new customer value to a global audience and achieve further growth in the home entertainment field.\u201d<\/p>\n
\u201cThrough this collaboration, we plan to jointly leverage our respective core strengths in branding, display technology, sales channels, supply chains, etc,\u201d\u00a0said Du Juan, chairperson of TCL. \u201cTogether, we aim to drive the global development and premiumization of the new company, delivering superior products and services to consumers worldwide.\u201d<\/p>\n
TCL and Sony first announced their intention to team up on the home entertainment business in January. However, the pair had yet to finalize the details\u00a0at the time.<\/p>\n
This is one of the few mergers and acquisitions among globally leading TV brands in the past two decades, Zita Zhang, deputy general manager of the large-size display business research department at Sigmaintell, told Yicai. \u201cIt will have a comprehensive and far-reaching impact on the entire market.\u201d<\/p>\n
TCL\u2019s global TV shipments totaled 30.7 million units last year, ranking second to Samsung\u00a0with 35.3 million units, according to Sigmaintell data. Sony\u2019s shipments amounted to 4.1 million units.<\/p>\n
After the deal is closed, TCL\u2019s TV shipments are expected to challenge Samsung\u2019s position as the world\u2019s leading TV maker within two years, said Rong Chaoping, deputy director of research at AVC Revo.<\/p>\n
Once the new company commences operations, the combined market share of Sony and TCL is expected to surpass Samsung\u2019s to rank first globally, Zhang said. This will rewrite the global TV market\u2019s competition landscape that has persisted for decades and will be the first time that a Chinese TV brand has challenged for the throne, she added.<\/p>\n
TCL will elevate the market positioning of its products to the ultra-premium level, leveraging the Sony and Bravia brands, and raise its share in the global high-end TV segment by tapping into Sony\u2019s existing sales network, Zhang pointed out.<\/p>\n
Editors: Tang Shihua, Futura Costaglione<\/p>\n<\/div>\n
\u2018 The preceding article may include information circulated by third parties \u2019 <\/em><\/p>\n \u2018 Some details of this article were extracted from the following source www.yicaiglobal.com \u2019 <\/em><\/p>\n","protected":false},"excerpt":{"rendered":" (Yicai) April 1 — Shares of TCL Electronics surged after the Chinese consumer electronics giant said it finalized the deal to take a majority stake in a new joint venture that will control Sony\u2019s home entertainment business\u00a0for a total of JPY75.4 billion (USD475 million). TCL Electronics [HKG: 1070] closed up 9\u00a0percent at HKD13.91\u00a0(USD1.77) in Hong […]<\/p>\n","protected":false},"author":2,"featured_media":2354026,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"footnotes":""},"categories":[25172],"tags":[456958,434275,434276,434278,434277,26630,385218,307149,433990,22205],"class_list":["post-2354025","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entertainment","tag-assets-acquisition","tag-controlling-stake","tag-high-end-products","tag-home-audio-system","tag-home-entertainment-business","tag-japan","tag-joint-venture","tag-sony","tag-tcl-electronics","tag-television"],"jetpack_featured_media_url":"https:\/\/celebrity.land\/en\/wp-content\/uploads\/2026\/04\/Chinas-TCL-Electronics-Soars-on-Deal-to-Gain-Control-of.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2354025","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/comments?post=2354025"}],"version-history":[{"count":1,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2354025\/revisions"}],"predecessor-version":[{"id":2354027,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2354025\/revisions\/2354027"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media\/2354026"}],"wp:attachment":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media?parent=2354025"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/categories?post=2354025"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/tags?post=2354025"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}