In the early days of this year, the Japanese electronics giant Sony and TCL announced a joint venture in TVs and home audio equipment, and it was also confirmed that TCL will be holding a controlling 51% stake. Today, the two companies have signed a definitive agreement for the partnership.
The agreement will make Sony to establish a wholly owned subsidiary to assume its home entertainment business, and TCL will enjoy a portion of this company’s shares, with TCL holding 51% and Sony holding 49% of the shares.
It is worth mentioning that the new company will be succeeding Sony’s home entertainment business, including product development and design, manufacturing, sales and logistics, and customer service for Bravia TVs, business-to-business flat panel displays and LED displays, projectors, and home audio equipment such as home theater systems and audio components. The new company will operate this integrated business globally.
TCL will be making a payment of JPY 75.4 billion to Sony at present values, and the final amount will be calculated after the adjustments for certain net debt and working capital when the deal closes. The new company will be starting from April next year.
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