Sony will hand over BRAVIA to TCL in 51% Joint Venture deal

[PODCAST] Sony will hand over BRAVIA to TCL in 51% Joint Venture dealThis Podcast is AI Generated by @roninfinitech

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Sony Group Corp. is radically altering its hardware strategy. The company announced a memorandum of understanding on Tuesday to cede majority control of its storied home entertainment business to Chinese manufacturing giant TCL.

The deal was signed on January 20, 2026, and will establish a new joint venture. Under the terms of the agreement, TCL will hold a 51% controlling stake while Sony retains 49%. Although the BRAVIA brand name will remain on consumer products, the shift marks the end of the Japanese brand’s era as an independent manufacturer of premium television sets.

Strategic Retreat from the Entertainment Hardware Business

The move follows years of intense pricing competition happening in the global display market. While Sony has maintained a reputation for high-end processing and audio, it has struggled to compete on price against the vertical integration of South Korean and Chinese rivals.

"Our focus is evolving toward a synergy of technology and entertainment IP", said Sony CEO Kimio Maki. Maki noted that the venture aims to combine Sony’s proprietary picture algorithms with TCL's massive production scale to deliver more captivating visuals more efficiently.

TCL gets the BRAVIA Advantage, Sony loses the Pressure

For TCL, the deal represents a major leap into the premium market while still having their hold intact in the affordable segment. As a production volume leader, TCL recently showcased its X11L flagship television featuring a Super Quantum Dot layer during CES 2026.

By taking the reins of the BRAVIA production cycle, TCL gains immediate access to Sony’s high-end engineering and a 20-year-old premium brand legacy. For Sony, it's a way out of the competitive pricing pressure bubbling in the industry for the last few years and a shortcut to boost manufacturing volume.

Under the updated structure, the joint venture will manage the new lifecycle of Sony's Home Entertainment products, which, of course, extends to its BRAVIA televisions. This includes product development, design, global manufacturing, supply chain, sales, logistics, and customer service.

Timeline to Integration

The companies expect to finalize binding agreements by late March 2026. If the deal passes regulatory hurdles, the joint venture is scheduled to begin operations in April 2027. The announcement has already sparked debate among industry analysts regarding the so-called "Sony Tax" and whether BRAVIA's industry-leading picture quality optimizations will be retained. Nevertheless, Sony BRAVIA from TCL might be coming in late 2027 or early 2028.

While TCL manages the supply chain and product manufacturing, the market will be watching closely to see if BRAVIA can maintain its premium pricing and distinct identity under a new production authority. However, I still expect Sony to have the final say when it comes to quality control across its QD-OLED/Mini-LED TVs and Home Entertainment products.