Sony Group Corp. Announces Joint Venture to Spin Off Bravia TV Business

Sony Group Corporation, the Japanese multinational conglomerate renowned for its consumer electronics and entertainment divisions, announced on January 21 2026 that it will spin off its home‑entertainment business into a joint venture with Chinese television maker TCL Electronics Holdings Ltd. The decision follows a sustained decline in Sony’s global television market share and a strategic move to strengthen its competitiveness in the highly competitive display market.

Structure of the Joint Venture

  • Ownership: TCL will hold a majority stake of 51 percent, while Sony will retain 49 percent. The joint venture will be established through a wholly owned subsidiary of Sony Group Corp. and its electronics unit.
  • Brand Continuity: The new entity will continue to market televisions under the Sony and Bravia names. The partnership will combine Sony’s brand equity with TCL’s expertise in display manufacturing.
  • Operational Scope: The venture will oversee the entire product lifecycle, from design and development to production and marketing. TCL’s advanced display technology will be employed across the portfolio.

Rationale Behind the Move

Sony’s television sales for the fiscal year ending March 2025 dropped 9.6 percent to ¥564.1 billion (US$3.6 billion), reflecting a broader erosion of its share in the global TV market. By ceding control to a partner that dominates the display supply chain, Sony aims to reduce operating costs, improve margins, and regain market relevance. The collaboration is also expected to accelerate innovation, leveraging TCL’s manufacturing scale and Sony’s premium brand positioning.

Timing and Future Plans

The joint venture is slated to commence operations in April 2027. While the announcement did not disclose immediate product launches, industry analysts anticipate that the first generation of co‑branded TVs will surface in the second half of 2027, potentially featuring hybrid panel technologies that blend Sony’s high‑end image processing with TCL’s cost‑effective panels.

Market Reception

Investors reacted positively to the announcement. Sony’s share price, which closed at ¥3,780 on January 18 2026, remains buoyant amid expectations that the venture will unlock value for shareholders. The move aligns with Sony’s broader strategy of divesting low‑margin segments to focus on higher‑growth areas such as gaming, entertainment content, and semiconductor components.

Conclusion

Sony Group Corp.’s partnership with TCL Electronics represents a significant pivot in the company’s consumer electronics strategy. By leveraging a joint venture structure, Sony seeks to combine its iconic Bravia brand with TCL’s manufacturing prowess, positioning itself to navigate a market that increasingly rewards scale, technological integration, and brand differentiation. The next few years will be critical in determining whether this alliance can reverse Sony’s declining TV market share and restore profitability in an industry where margins are under constant pressure.