Li Dongsheng is poised to redraw the global television industry map. On January 20, TCL Electronics signed a memorandum of intent with Sony to establish a joint venture that will take over Sony's home entertainment business, conducting integrated global operations for televisions, home audio systems, and related products. The announcement disclosed that the joint venture entity will be 51% owned by a TCL subsidiary and 49% by Sony, with arrangements for patent, technology, and brand licensing included. Consequently, Li Dongsheng's side will secure controlling power in the joint venture, and the revenue will be consolidated into TCL Electronics' financial statements. Sony's television business has been underperforming in recent years, making a restructuring part of its long-term plan. "During the 2026 fiscal year, the department plans to complete significant structural reforms, such as reorganizing the sales structure and optimizing production bases," management revealed in the 2024 earnings report, indicating broad structural reforms and transformation for certain businesses, including televisions. Clearly, Li Dongsheng has seized this opportunity. TCL Electronics, the main entity in this cooperation which focuses on smart terminals like televisions, is currently on a strong upward trajectory. For the first half of 2025 (January-June), its revenue reached HK$547.77 billion, and it is projected to surpass the HK$1 trillion mark for the first time for the full year; the company has also forecast an annual net profit of approximately HK$2.08 billion to HK$2.3 billion. Disclosures show that for the 2024 fiscal year (April 2024 - March 2025), Sony's Home Entertainment & Sound business generated total revenue of 2.4 trillion yen, roughly equivalent to 106 billion yuan. Within this, the Displays and Sound segments accounted for 25% and 12% of revenue respectively, representing a combined revenue of around 40 billion yuan. While the specific business scope of the joint venture has not been announced, even if only the Displays and Sound businesses are consolidated, TCL Electronics' revenue would reach a scale of at least 140 billion yuan. More importantly, Li Dongsheng is positioned to challenge for the top spot in the global television market. According to Sigmaintell, TCL's market share in TV sets is expected to be 13.8% in 2025; combined with Sony's 1.9% share, their total shipment volume of 34.5 million units would pose a strong challenge to Samsung's leading position. Sigmaintell predicts that if the joint venture commences smooth operations by 2027, the combined market share of TCL and Sony could reach 16.7%, potentially surpassing Samsung Electronics' 16.2% to claim the global number one spot, fundamentally altering the decades-old global television brand landscape. Simultaneously, as Li Dongsheng already controls TCL Technology, the global leader in display panels, this vertical integration of the upstream and downstream supply chain will significantly enhance the competitiveness of his television segment. Public information indicates that TCL Technology has consistently been a major supplier to TCL Electronics, which purchased over HK$22.8 billion worth of raw materials and finished goods from it in 2024. Through this transaction, Li Dongsheng is also expected to secure licensing rights for Sony's premium brands, including SONY and Bravia, in the television sector, thereby solidifying his global influence in end-user products. Objectively speaking, this deal is not yet finalized. Based on the memorandum of intent, Sony has agreed and committed that until March 31, 2026, it will not enter into discussions or negotiations with any third party regarding a similar or comparable transaction. For Li Dongsheng, an opportunity of this magnitude is unlikely to slip away.
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