TCL Electronics officially announces: Taking over Sony TV business for HK$3.78 billion

On March 31, TCL Electronics announced that the company had established a joint venture with Sony for approximately HK$3.78 billion in cash and acquired Sony's Malaysian subsidiary SOEM to undertake Sony's home entertainment business (mainly the development, manufacturing and sales of TV products). According to the agreement, TCL Electronics will hold 51% of the shares of the new company and Sony will hold 49% of the shares.

Subsequently, Sony will transfer the sales, marketing, distribution and service functions related to its home entertainment business and the headquarters functions related to the home entertainment business to the new company; it will enter into a patent/proprietary technology licensing agreement and a brand licensing agreement with the new company, so that it can release authorized products globally and use the "SONY" trademark on authorized products and related marketing materials worldwide.

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

Leveraging Sony’s long-term accumulation of high-quality picture and sound technology, brand value and operational expertise including supply chain management, while leveraging TCL Electronics’ advanced display technology, global scale advantages, improved industrial layout, end-to-end cost-effectiveness and vertical supply chain advantages.