In what could become the most consequential shake-up in the global television industry in decades, Sony is on the verge of offloading a majority stake in its TV business to Chinese electronics giant TCL in a deal reportedly worth up to $1 billion.

Sources close to the negotiations say the agreement is nearing completion, with an announcement expected before the close of the Asian financial year. The move would see TCL take control of manufacturing Sony’s iconic Bravia televisions, while Sony retains control of its highly prized image processing technology — a critical asset also used in Hollywood-grade cameras for film and television production.

The deal signals a dramatic strategic pivot for Sony, which has struggled to compete on price in the cutthroat TV market despite maintaining a technological edge in display and processing. By shifting manufacturing to TCL, Sony is effectively stepping back from one of its legacy businesses while doubling down on higher-margin intellectual property ventures including film, music, anime, and sports content.

Industry analysts are already calling the move a “watershed moment,” warning it will intensify pressure on rivals Samsung, LG, and Hisense — all of whom are preparing to launch competing RGB LED television technologies this year.

Under the proposed structure, TCL would take a 51% controlling stake in the venture, with Sony retaining 49% ownership and continued influence over core technologies. The Bravia brand is expected to remain intact, but future models will be built by TCL, targeting the premium large-screen market with sizes ranging from 50 to 115 inches.

Retailers are anticipating a new generation of TCL-manufactured Sony TVs as early as 2027, with a likely global unveiling at IFA Berlin in 2026. These models are expected to feature Sony’s newly trademarked “True RGB” LCD technology, which insiders claim outperforms rival display systems.

While negotiations reportedly hit early roadblocks over intellectual property rights, those issues have largely been resolved, according to sources familiar with the talks. The deal itself was first hinted at in January following a series of closed-door meetings between executives at CES in Las Vegas.

Market reaction has been swift. Sony shares rose as much as 2.6% in Tokyo amid speculation that a deal was imminent, despite the stock being down 20% this year. TCL, meanwhile, surged 3.5% — its biggest intraday gain in weeks — extending a modest 5% rise for the year.

For Sony, the message is clear: exit a low-margin hardware battle and focus on content and technology leadership. For TCL, it’s a bold bid to cement its place at the top tier of the global TV market.

And for the industry, it may mark the beginning of a new era — where brand legacy and manufacturing muscle are no longer owned by the same player.