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Onkyo buys Pioneer

NEMOaudio said:
Then where do we position INTEGRA?
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I would think both will survive. They're marketed differently; Elite has always been a "best of" series within the Pioneer brand. Integra used to be the same thing for Onkyo, but not any more. It's not sold at retail at all, it's strictly an HT-oriented series only available through distributors who sell to the "systems integrator" market (think CEDIA). Pioneer Elite is/was available through higher end shops (brick and mortar). Integra's path is very different, and they've been quite successful at it.

Happy trails,
Larry B.
 
1tumbleweed said:
I would think both will survive. They're marketed differently; Elite has always been a "best of" series within the Pioneer brand. Integra used to be the same thing for Onkyo, but not any more. It's not sold at retail at all, it's strictly an HT-oriented series only available through distributors who sell to the "systems integrator" market (think CEDIA). Pioneer Elite is/was available through higher end shops (brick and mortar). Integra's path is very different, and they've been quite successful at it.

Happy trails,
Larry B.
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+1 Integra is like a hidden brand.
 
OK, folks, no offense, but some of you either couldn't bother to read the press release, or didn't understand it. Admittedly, this is a complex deal.

Pioneer Electronics is a very big company, having done $5 Billion annual sales in its fiscal 2014 (year ended March 31 2014). It made a profit. A very significant percentage of its revenues comes from CAR audio, which it is NOT selling to Onkyo.

Pioneer is selling its HOME A/V business to Onkyo, yes, BUT it's is Pioneer that is buying an ownership stake in Onkyo the company - it will buy just less than 15% ownership in Onkyo. Pioneer is more than TEN times larger than Onkyo - Onkyo did about $330 Million in sales in its 2014 Fiscal year (also ended March 31 2014).

So it's actually Pioneer, which is a healthy company, getting an ownership stake in Onkyo, but then "selling" it's home AV business only to Onkyo. That's the part that we are all interested in of course, but it's good I think to understand the structure of the deal.
 
Typical convoluted corporate deal.

It looks like Pioneer is making good money selling car audio, but not Home A/V.

Onkyo is making good money in Home A/V and doesn't do a thing with car audio.

So ... it makes sense for Pioneer to sell their Home A/V business to Onkyo, where it can be assimilated to augment Onkyo's existing business, and then Pioneer is free of the distraction of running the Home A/V business plus they can book in (likely more) profit from their 10% Onkyo stake.

As far as the end users are concerned it means that we won't be seeing as much competition in Home A/V as we were. There appears to be a lot of competition in this market so I suspect the loss isn't significant.

Mark Gosdin
 
What this means for me is that I did well in having a full resto of my Pioneer SX-1250 by Mattsd.

And I think the bad hdmi boards were sourced by many brands (HK, for one) from a vendor, who made a ton of those faulty messes.
 
That's a strange press release. It sure sounds like the financing fell through on some kind of acquisition deal. I will ask around...

-k
 
ken kantor said:
That's a strange press release. It sure sounds like the financing fell through on some kind of acquisition deal. I will ask around...

-k
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Strange to me as well. Everyone I spoke to at CEDIA was confused as well, even some of the Pioneer dealers.
 
It appears that the buy-out specialists in Hong Kong backed away from the deal. Likely their presence in the deal would have caused difficulties with managing the combined business vs Onkyo's outright purchase of Pioneer's A/V business.

Kind of a "too-many-layers of management" problem.

Just a guess.

Mark Gosdin
 
mgosdin said:
It appears that the buy-out specialists in Hong Kong backed away from the deal. Likely their presence in the deal would have caused difficulties with managing the combined business vs Onkyo's outright purchase of Pioneer's A/V business.
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It is for the better, IMO
 
That's identical to what's been said before, so it would seem to be true, yes. Pioneer is selling its home AV business to Onkyo, and concomitantly Pioneer is taking a @14% ownership stake in Onkyo.
 
So who bought who ?

Is the AV business equal to the 14%

Skylab said:
That's identical to what's been said before, so it would seem to be true, yes. Pioneer is selling its home AV business to Onkyo, and concomitantly Pioneer is taking a @14% ownership stake in Onkyo.
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qguy said:
So who bought who ?

Is the AV business equal to the 14%
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Pretty much that. Onkyo either did not have or did not want to spend the cash to buy Pioneer's A/V business outright, so Pioneer took an ownership / stock position in payment instead.

In reading the linked article it looks like Pioneer had lost so much market share in the past 30 years that they really were no longer in a position to compete in the A/V market. They just missed the boat too many times and really wanted to / had to get out of that business.

Mark Gosdin
 
qguy said:
So who bought who ?

Is the AV business equal to the 14%
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The answer to the first question (in spite of the unfortunately title to this thread) is that NEITHER company has purchased the other. Pioneer as a company is more than ten times larger than Onkyo is. So the right way to look at it is as you asked and mgosdin said, Pioneer traded JUST its AV business to Onkyo for a minority ownership stake in Onkyo.
 
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