Pioneer has confirmed it will sell its AV business to Onkyo and take a 14.95 per cent stake in the company at the same time. The two brands will remain under the new structure.

Onkyo and Pioneer announced they were planning to join forces in the AV world back in June, with a Hong Kong-based fund, Baring Private Equity, also involved in discussions. 

However, Barings has since pulled out of the deal and instead Pioneer has today confirmed that it will in fact sell its entire AV division to Onkyo. The deal aims to make both brands more competitive by "improving production and logistics efficiency". 

A statement from Pioneer says: "The three parties [Pioneer, Onkyo and Baring Private Equity] ceased discussions as they decided that the home AV business needs to be considered from a long-term perspective as the business must be developed strategically and flexibly to quickly respond to the continuously changing business environment."

It was decided that it would be "more efficient" for Pioneer and Onkyo to discuss a deal directly without a third-party financial sponsor.

The AV business, known as Pioneer Home Electronics Corporation, generates some 10 per cent of the Pioneer group's overall sales. 

More after the break

PHE includes Pioneer's home cinema amplifiers, Blu-ray players and other AV products, but not its DJ or in-car audio products. 

Pioneer plans to focus on its in-car audio business, reports The Japan Times, while potentially looking for a buyer for its DJ business.

The two companies aim to finalise the details of the deal by the end of October in order to complete the integration by March next year.

[via Reuters]

 

 

Comments

kabf1cox's picture

The Demise of the Japanese Consumer Electronics Industry

Thank goodness for the few remaining mainstream  Japanese consumer electronics manufacturers that still turn out some good high quality high-end electronics. Companies like Denon, Marantz, Onkyo and Yamaha still manage to build a few very solid high-end pieces each year. But even those seem to be fewer and further between these days. Sony's attempt to maintain it's ES moniker via it's HiRes Audio line-up has also lost quite a few steps in the hi-end market. Pioneer's once proud Elite mark has become reserved soley for a few mid level stereo components and it's once vast line of AV products. And now comes the announcement that Pioneer plans to, in effect, exit the home consumer electronics business. A company that built it's legend in the golden era of hi-fi is just the latest casualty to a very trying time in this industries history. As a person who grew with Pioneer components scattered all through my house in the late 70's and 80's this latest announcement saddens me.

In this time of portable convenience and digital downloads we seem to have lost touch with the "art" of music playback. Don't get me wrong, I embrace new technology and am greatly encouraged with the groundswell of true high-end music servers for digital playback in hi-fi systems. One can only hope this leads to a resurgence of interest in real hi-fi for the new generation of music enthusiasts. But I can't help but wonder what amazing gifts we'll miss out on because the once great Japanese companies of the 60's, 70's and 80's seem content to build so-so me too products for the masses. The true inginuity they once displayed now seems reserved to the Accuphase and Luxmans of Japan...those high-end niche Japanese lines.

 

Perhaps one day we'll see a resurgance of Japanese strength in the consumer electronics industry. But it will require a resurgence of the once powerful Japanese economy to spur that on. In a global economy which continues to drive manufacturing to lower and lower cost markets by companies who's bottom lines have surplanted technological breakthrough as the benchmark of success this seems highly unlikely.

For now this seems reserved for a sect of smaller niche high-end companies where technology and craftmanship still remain at the core of their philosophies and definitions of success. Let us hope that the era of the audiophile is not dead. Perhaps it's just being re-defined a bit. But let's hope there is still another golden era yet to come for future generations to enjoy...just as I did as young enthusiast coming of age in the 70's and 80's.

Farewell Pioneer Home Electronics...for now. Perhaps there is another resurgence left in our industry to justify your re-emergence one day. If not, then this is yet another sad day for all of us electronics enthusiasts who have admired the Japanese leadership from hi-fi's golden age.

peterw's picture

Pioneer av

Sorry if being a bit thick but will this end up as onkyo using the pioneer brand as a badge engineered product? Or will both make remain as seperate products 

as a pioneer fan for many years I fear the worst let's hope my currant unit does not fail , good job I bought a new unit this year 

 

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