Japanese CRT Decline: Sony, TCL & Industry Impact

## TCL to Acquire Sony’s TV Business: Reshaping the Global TV Market

Seoul, South Korea – January 26, 2026 – A important shift is poised to disrupt the global TV market with TCL Electronics (1070.HK) acquiring Sony’s TV division through a joint venture. This move, announced on January 20, 2026, positions TCL as a major threat to Samsung Electronics’ market leadership.

Key Developments:

• Joint venture: TCL Electronics and sony have signed a Memorandum of Understanding to establish a joint venture acquiring and succeeding Sony’s home entertainment business.
• Ownership: TCL will hold a 51% stake in the joint venture, with Sony holding 49%.
• Operational Launch: The joint venture is expected to begin operations in April 2027, managing the entire value chain – R&D, design, production, sales, logistics, and customer service.
• Brand Retention: The joint venture will continue to utilize the Sony and BRAVIA brands, leveraging Sony’s premium brand recognition.
• Sony’s Rationale: While framing the move as continued participation through the joint venture, Sony’s decision signals a retreat from directly competing in the increasingly challenging TV market. Sony previously attempted to improve profitability by spinning off it’s TV business in 2014, but intensifying competition led to this new strategy. Sony’s ET&S division (including TV) saw a 7% sales and 13.1% operating profit decline in Q2 FY2025.
• TCL’s Growth: TCL Electronics is experiencing strong growth, with projected net profit increases of 45-60% in 2025 compared to 2024, driven by globalization and a focus on mid-to-high-end products.
• Strategic Alignment: TCL cited the expanding large-sized TV market, Sony’s leadership in high-end segments, and its strong technology and brand value as key reasons for the joint venture.

Market Implications:

This deal marks a significant shift in the global TV landscape, moving from a three-way competition between Korea, china, and Japan to a two-way battle between Korea and China. Japanese companies are increasingly exiting the TV business, allowing Chinese manufacturers like TCL to gain power and leverage established brands to penetrate the premium market. this poses a direct challenge to Korea’s dominance in the global TV market.

Source: NewsPim,Reporter Bae Sang-hee.

Did you know? – Sony’s previous attempt to restructure its TV business in 2014 involved spinning it off into a wholly-owned subsidiary, but market pressures ultimately led to this joint venture with TCL.

Why did this happen? The acquisition stems from Sony’s struggles in the competitive TV market, marked by declining sales and profits in its ET&S division. Sony’s decision reflects a strategic retreat from direct competition, seeking to leverage its brand recognition through a partnership. Together, TCL aims to expand its market share and move further into the high-end TV segment, capitalizing on sony’s established brand and technology.

Pro tip – Joint ventures allow companies to share risks and resources, perhaps accelerating innovation and market penetration. Though, integrating different corporate cultures can present challenges.

Who is involved? the primary players are TCL Electronics, a rapidly growing Chinese TV manufacturer, and Sony, a Japanese electronics giant with a long-standing reputation for quality and innovation. TCL will hold a 51% controlling stake in the joint venture, while Sony will retain a 49% share. the deal impacts the global TV market, particularly Samsung Electronics, currently the market leader.

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