Pioneer Confirms Sale of DJ Business

Pioneer CDJ-2000
 
Japanese electronics maker Pioneer announced on Tuesday that its selling its DJ business to a private equity firm KKR & Co LP for around 59 billion yen ($550 million).
 
While the majority of the company will be sold to US firm KKR, Pioneer will maintain a 14.95 percent voting stake in the DJ brand.
 
Last month, Reuters reported that Pioneer was in the final stages of selling its DJ business but the company issued a press release denying the news. Some believe the statement was ambiguous though: as it didn’t rule out the possibility of a future sale.
 
As previously reported, Pioneer is selling off its DJ business to focus on its automobile electronic business, which it believes has potential for expansion in emerging markets and increasingly connected cars.
 
During a media briefing held in Tokyo on Tuesday, Chief Executive and President Susumu Kotani explained the sale:
 

“We realized we wouldn’t be able to invest in the DJ business so it would be better to spin it off and grow it independently.”

 
He also said the DJ business was highly profitable and running an operating margin of nearly 20 percent on sales of 21.6 billion yen in the year ending March 31, writes Reuters.
 
Related: How to Mix Harmonically on Pioneer CDJs

  • boooo

    what does the new company that bought it make? I hope not stanton or some other crappy company,

    • Buaa

      Stanton is actually really good with making turntables, did you ever even test one? It those has actually even more torq than sl-1200, tho I still like technics more. Denon is good making hybrid cd players, with vinyl platter and still working like CDJ. If you would gather pioneers software, buttons and the “REAL THING” feeling with denons “hybrid-cdj” I think there would be a really awesome player out there.

      • DJ Vue

        I have Str8-150s. IMO they work better than all the techs I used mainly because they were modernized turntables. At least until these new ones from pioneer came out.

        Anyone remember when Vestax made good turntables?

        • ChevRoulette

          man youneed to have a play on the new pioneer turntables….. they shred absolutely anything on the market

  • Jerry Powers Jr

    Stanton is garbage period…I don’t want to hear how good they are…when they are inferior to pioneer of even numark….this is terrible, why would pioneer do this?

    • ChristopherLParas

      $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

    • J-Nyce

      I’ll give yo $550 million reasons why!

  • jamespmode

    KKR is an investment firm only. Hoping Pioneer DJ will not change too much given this occurring. Hope the creativity and R&D of their team stays where it is and continues to grow the business. Only time will tell.

    • ChristopherLParas

      KKR is a VC, As a VC, they are made up of people that
      make their money by ripping apart companies, selling the pieces off (parts of company are greater than the sum, just like auto parts!) Then they move-onto their next meal! They are publicly listed, so they only respond to
      their shareholders, being themselves and their friends as
      the primary stake holders! The unfortunate part is that most pro
      audio and video companies left in the market place today need VC
      companies for R&D funding! I was just reading about D&M holdings
      which owns Denon and Marantz If
      you research you will find that they are funded by non-other than Bain Capital
      who also funded startups like Staples! It’s always about the money, not
      customers, or great engineering, or great employees, it’s just how quickly
      the VC can churn and burn to make money for their investors and themselves!

  • ChristopherLParas

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