Sony (SONY.US) is close to selling a majority stake in its home entertainment business to TCL, with the transaction estimated to reach $1 billion.

According to informed sources, Sony (SONY.US) is close to reaching a binding agreement to sell the majority stake of its home entertainment business to Chinese competitor TCL ELECTRONICS Holdings Limited, with a transaction valuation of around $1 billion. The sources said that negotiations between the two parties have made progress, and they hope to announce the deal as early as this month. They also mentioned that although the negotiations have reached the final stages, a final decision has not been made yet. Representatives from Sony and TCL stated that the two companies are continuing discussions to finalize the agreement, and once it is done, an announcement will be made promptly. In January of this year, Sony and TCL announced plans to establish a joint venture for Sony's home entertainment business (including its Bravia TV brand). According to a memorandum of understanding, Sony will hold a 49% stake in the joint venture, while TCL will hold the remaining 51%. The new joint venture is set to begin operations in April 2027, producing TVs featuring Sony and Bravia brands but using TCL display technology. Sony has been focusing on expanding its intellectual property portfolio in recent years including anime, live-action films, music, and sports broadcasting while streamlining its consumer electronics business. As one of the oldest and largest electronic groups in China, TCL has been dedicated to building a large overseas business for many years. Data shows that Sony's stock listed in Tokyo has fallen by 21% this year, with a market value of $123 billion; meanwhile, TCL ELECTRONICS' stock in the Hong Kong market has increased by about 4%, with a market value of $3.5 billion.