SHANGHAI, Jan. 20 (Xinhua) -- Sony Corporation has signed a memorandum of understanding with TCL Electronics Holdings Limited to explore the establishment of a joint venture aimed at strengthening their partnership in the home entertainment market, Sony said on Tuesday.
Under the non-binding agreement, the two companies plan to establish a new venture that would take over Sony's home entertainment business. TCL would hold a 51 percent stake, and Sony 49 percent. The venture would operate globally, covering the full value chain of products such as televisions and home audio equipment -- from product development and design to manufacturing, sales, logistics and customer service.
The two companies aim to conclude negotiations on definitive, legally binding agreements by the end of March. Subject to regulatory approvals and other conditions, the new company is expected to begin operations in April 2027.
Sony President and CEO Kimio Maki said the partnership would combine the expertise of both companies to create new customer value, and deliver more captivating audio and visual experiences to customers worldwide.
TCL Electronics Chairperson Du Juan said the strategic partnership could enhance brand value, achieve scale benefits and optimize supply chains.
The move comes as the global large-screen television market continues to expand, driven by the growth of video-sharing and over-the-top streaming platforms, as well as rising demand for larger and higher-resolution displays. ■
