Official announcement, TCL and Sony signed final agreement

On March 31, TCL Electronics and Sony jointly announced that the two parties had signed a legally binding final agreement on strategic cooperation in the field of home entertainment.

This move marks the decisive progress in negotiations between the two parties since the signing of the memorandum of intent on January 20 this year. A new home entertainment entity jointly led by the two giants is about to be born.

According to the agreement, the two parties will form a new joint venture through a series of complex capital and business reorganizations. The specific path is: Sony will first establish a wholly-owned subsidiary to take over its home entertainment business, and then TCL will subscribe for part of the subsidiary's shares, eventually establishing a new company in which TCL holds 51% and Sony holds 49%.

The new company will fully take over and operate Sony's global R&D, design, manufacturing, sales and service systems including consumer TVs (BRAVIA), B2B flat panel displays, B2B LED displays, projectors and home audio equipment.

As an important part of the transaction, 100% of Sony's manufacturing subsidiary SOEM in Malaysia will be transferred to TCL. At the same time, the two parties will continue to negotiate on the transfer of Sony's equity in Shanghai Suoguang Imaging Co., Ltd..

The announcement disclosed that the overall enterprise value of the business involved is approximately 102.8 billion yen (approximately HK$5.2 billion). TCL is expected to pay a consideration of approximately 75.4 billion yen (approximately HK$3.8 billion), and the final amount will be adjusted based on relevant financial conditions when the transaction is completed. The collaboration is still subject to relevant regulatory approvals and other prerequisites, and the new company is expected to officially begin operations in April 2027.

The new company's products will continue to use the "Sony" and "BRAVIA" brands. Both parties stated that the new company will be committed to developing innovative products and driving business growth through operational excellence.

The board of directors of TCL Electronics believes that this transaction is an opportunity for both parties to integrate superior resources and jointly create a sustainable growth platform. It will effectively deepen its global leadership in the intelligent terminal industry and is highly consistent with the group's "globalization" and "mid-to-high-end" strategies.

This joint venture actually means that Sony transfers the operational leadership of its home entertainment business to TCL, while retaining brand premium and technology synergy. For TCL, this is not only a brand leap, but also a major reinforcement of its B2B display business capabilities. By integrating Sony's high-end imaging technology, color science and brand influence, and TCL's advantages in cost control, supply chain efficiency and large-scale manufacturing, the new company is expected to form stronger competitiveness in the world, especially in the high-end display and professional display markets. At the same time, the global influence of Chinese TV brands will also enter a new stage through this in-depth integration with top international brands.