Sony Group is close to finalizing a binding agreement to sell a majority stake in its home entertainment business to Chinese rival TCL Electronics, with the deal valued at approximately $1 billion. Negotiations have advanced significantly, and both parties are aiming to announce the transaction as early as this month. Although discussions are at an advanced stage, no final decision has been made. A Sony representative stated that the company is continuing discussions to reach a definitive agreement and will make an announcement once finalized. TCL has not yet commented. In January, Sony and TCL signed a memorandum of understanding agreeing to further explore strategic cooperation in the home entertainment sector. The memorandum outlined plans to establish a joint venture, with TCL holding a 51% stake and Sony retaining 49%, which would take over Sony's home entertainment operations. The joint venture would manage integrated global operations—from product development, design, and manufacturing to sales, logistics, and customer service—for products such as televisions and home audio systems. The two companies plan to negotiate a legally binding final agreement by the end of March 2026. Subject to the signing of the final agreement and necessary regulatory approvals, the new company is expected to begin operations in April 2027. Sony has been focusing on expanding its intellectual property portfolio, including anime, live-action films, music, and sports broadcasting, while scaling back its consumer electronics operations. TCL, one of China's oldest and largest electronics conglomerates, has long sought to build a strong international presence. Since the beginning of the year, Sony's stock has fallen 21% in Tokyo trading, reducing its market capitalization to $123 billion. Over the same period, TCL's shares have risen about 4% in Hong Kong, bringing its market value to $3.5 billion.