Reports indicate that Sony is about to close a deal to sell a majority stake in its home entertainment business to TCL.

Why is Sony selling most of its stake in the home entertainment business at this time?

IT Home, March 23 — According to Bloomberg, sources familiar with the matter reveal that Sony Group Corp. is about to reach a binding agreement to sell most of its stake in the home entertainment division to Chinese competitor TCL Electronics Holdings Ltd. The deal is valued at approximately $1 billion (IT Home note: about 6.908 billion RMB at current exchange rates).

Sources say negotiations have made progress, aiming to announce the deal as early as this month. They also note that while negotiations are in the late stages, no final decision has been made.

Spokespersons for Sony and TCL stated that the two companies are continuing discussions to reach a final agreement, which will be announced immediately once finalized.

In January, 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 January announcement stated that the new joint venture would begin operations in April 2027, manufacturing TVs 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. TCL is one of China’s oldest and largest electronics groups, with a long-standing effort to develop large overseas markets.

Sony’s stock price has fallen 21% this year on the Tokyo market, with a market capitalization of $123 billion. Meanwhile, TCL Electronics has risen about 4% on the Hong Kong stock market, with a market value of $3.5 billion.