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TOKYO/SHENZHEN — Sony Group is spinning off its storied television business to form a joint venture with China’s TCL Group, effectively handing over management control of the division that once defined the Japanese electronics giant.

Under the terms of a Memorandum of Understanding (MOU) announced on January 20, 2026, TCL will hold a 51% stake in the new joint venture, while Sony will retain 49%. The new entity will integrate the entire lifecycle of TV and home entertainment products—from R&D and design to manufacturing, sales, and distribution.

A Strategic Retreat from Hardware
The move is being viewed as a "selection and focus" strategy. Sony is pivoting away from the low-margin consumer electronics sector, which has been hit hard by aggressive pricing from Chinese competitors, to focus on its high-growth pillars: gaming, movies, and music.

"Through this strategic partnership with TCL, we will combine our expertise to create new customer value and provide immersive experiences to global audiences," said Kimio Maki, CEO of Sony, in a statement.

Synergy of Brand and Scale
While TCL takes the driver's seat in operations, the products will continue to bear the globally recognized "Sony" and "BRAVIA" brand names. The partnership aims to marry Sony’s premium brand equity and image processing technology with TCL’s massive production scale and vertically integrated supply chain.

The Numbers Behind the Deal
The decision comes as Sony’s presence in the global TV market has dwindled significantly. According to market research firm Sigmaintell:

TCL: Ranked 2nd globally with a 13.8% market share (30.4 million units shipped).
Sony: Slumped to 10th place with a mere 1.9% market share (4.1 million units), a 14% year-on-year decline.
Financially, Sony’s display business has been a drag on its earnings. Revenue for the display segment in Q1 2025 fell 10% quarter-on-quarter to 597.6 billion yen (approx. $3.8 billion USD).

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