Sony Corporation ("Sony") and TCL Electronics Holdings Limited ("TCL") today announced that the two companies have agreed to move forward with discussions and consideration for a strategic partnership in the home entertainment field.

Specifically, the two companies have signed a memorandum of understanding to confirm their intentions to establish a joint venture that will assume Sony's home entertainment business, with TCL holding 51% and Sony holding 49% of its shares. The joint venture will operate globally, handling the full process from product development and design to manufacturing, sales, logistics, and customer service for products including televisions and home audio equipment. Sony and TCL will proceed with discussions toward executing definitive binding agreements by the end of March 2026. Subject to execution of the definitive agreements and relevant regulatory approvals and other conditions, the new company is expected to commence its operations in April 2027.

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 advantages, industrial footprint, end-to-end cost efficiency, and vertical supply chain strength. The new company's products are expected to carry the globally recognized "Sony" name and "BRAVIA™" name, aiming to create new customer value through these branded products such as TVs and home audio equipment.

The global market for large TV products continues to expand, driven by trends such as diversified viewing styles through growing OTT(*) and video-sharing platforms, enhanced user experiences enabled by the evolution of smart features, as well as adoption of higher resolution and larger displays. In this market environment, the new company aims to create innovative products that meet the expectations of customers worldwide and achieve further business growth through outstanding operational excellence. Sony and TCL are committed to strongly supporting the sustainable growth of the new company.