A Sony TCL joint venture was announced to separate Sony’s TV and audio home entertainment business into a new company with TCL holding a 51% controlling stake, indicating an ownership structure of (51/49).  

Sony and its flagship Bravia TVs will continue under the new TCL partnership, which will retain these brands. The transition timeline is targeted for April 2027.  

Sony has long been a leader in home theater, while TCL has evolved from a budget brand to a premium competitor against Samsung and LG. CNET’s tests show TCL performs well, especially in the LCD television category.  

At CES 2026, TCL introduced the X11L, a large LCD display featuring a Super Quantum Dot layer that the company claims in improving color and brightness.  

If you own a TV from either company, review your device settings to ensure optimal performance.  

In official statements, the company said the new venture will rely on Sony’s high-quality picture and audio technology. It will also use Sony’s brand value and operational expertise, including supply chain management. TCL will contribute to its advanced display technology, global scale, industrial footprint, cost efficiency, and vertical integration.  

Sony TCL-MOU intends to complete the agreement by the end of March, pending contractual and governmental approvals.  

Why Are Sony And TCL Partnering Now? 

In the highly competitive smart TV market, where frequent price reductions and limited product differentiation are common, it is notable that a merger between two leading brands has not occurred sooner.  

Even well-known premium brands are finding it hard to compete on their own against companies like Samsung and LG that control more of the hardware stack and ship at massive volumes, said Kaveh Vahadat, a founder and CEO at RiseAngle, a company focused on generative video creation and video games.   

Sony offers strong brand recognition and a long-standing reputation, while its partnership with TCL supports efficient manufacturing. A partnership could lead to more competitive pricing for consumers.  

The planned partnership, Vahadat said, is less about Sony TV business stepping back from TVs entirely and more about adjusting how the Smart TV market now works.  

Buyers of future Sony or Bravia-branded televisions may see increased advertising.  

TCL-branded smart televisions are notoriously filled with promotional content, including recommended programming and product advertising, said Rick Ellis, founder and managing editor at AllYourScreens.com, which covers the TV industry and programming.  

Can’t be disabled on current TCL sets, though users can limit some personalization features, Ellis said. While Sony-branded smart TVs share some features, they tend to be much less intrusive.  

What was Announced? 

Sony has provided media outlets with a little more insight into the type of partnership planned.  

Sony and TCL have agreed to move forward with discussions and consideration for a strategic partnership in the home entertainment field.  

Two companies have signed a memorandum of understanding to establish a joint venture to grow the home entertainment business globally by combining their strengths.  

The new company plans to advance its business by leveraging Sony’s high-quality picture and audio technology cultivated over the years. Brand value and operational expertise, including supply chain management, while utilizing TCL’s advanced display technology, global scale strength, industrial footprint, and to end cost efficiency and vertical supply chain advantages.  

We consider the two companies to be nearly equal partners. Both Sony and TCL will provide steadfast support for the sustainable growth of the new company, creating innovative products that meet customer expectations worldwide and pursuing further business expansion. Operational Excellence.  

At this stage, the announcement reflects the initial memorandum of understanding, and further details are still under discussion. We will communicate further at the appropriate time when there is confirmed information to share.  

TCL has also been contacted for comment. However, a few concrete details are expected at this stage. According to the report, definitive agreements are anticipated by the end of March.