TCL Electronics (HKG:1070) will purchase a majority stake in Sony's (TYO:6758) home entertainment operations for 75.4 billion yen, according to a statement by the Japanese appliance giant.

The purchase will entail the creation of a new joint venture called Bravia Inc., in which TCL will hold 51% and Sony the remaining 49%.

The home entertainment business includes Sony's Bravia televisions.

TCL will then purchase the entire stake in manufacturing subsidiary Sony EMCS (Malaysia), and will negotiate the potential acquisition of Sony's stake in Shanghai Suoguang Visual Products by TCL.

The enterprise value of the businesses in the JV is slated to be 102.8 billion yen.

The TCL-Sony joint venture will start operations in April 2027.

Shares in TCL soared 8% during the closing bell on Wednesday while Sony's shares jumped 5%.