Sony TVs

Sony Group is close to finalizing an agreement to sell a majority stake in its home entertainment business to China’s TCL Electronics Holdings (TCL) in a transaction valued at roughly $1 billion (about ¥160 billion), according to people familiar with the matter.

The two companies aim to announce the signing of a legally binding agreement by the end of March, said the people, who requested anonymity because the information is not public. Negotiations are in the final stage, but no definitive decision has been made yet.

Spokespersons for Sony Group and TCL said that discussions toward a final agreement are ongoing and that an announcement will be made promptly once the contract is signed.

In January, Sony Group announced that it had reached a basic agreement with TCL on a strategic partnership in the home entertainment sector. Under the plan, TCL will hold a 51% stake and Sony’s subsidiary will hold 49% in a joint venture that will globally develop, sell, and service televisions and home audio products under the “Sony” and “BRAVIA” brands. The business is scheduled to launch in April 2027, using TCL’s display technologies.

Sony Group has been scaling back its consumer electronics operations while focusing on expanding its intellectual property (IP) portfolio, including anime, live-action films, music, and sports broadcasting. TCL, one of China’s largest and most established electronics conglomerates, has long sought to expand its overseas business.