# Pioneer/Onkyo Merger?



## Biscuit97 (Jan 20, 2012)

Any speculation on what happens with Pioneer now that the venture capital firm and Onkyo have purchased a large percentage of the AV business? It doesn't look like Pioneer released successors to the 1223, 1323 or the 1523 from last year. Does anyone expect new offerings from Pioneer over the next 6-8 months? I also wonder if new offerings will more closely resemble old Pioneer receivers or Onkyo receivers. Speculate away...


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## willis7469 (Jan 31, 2014)

I'm guessing it will be at least one more generation til we see any influence from onkyo.


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## tcarcio (Jun 27, 2007)

I know that Onkyo gave up on Audyssey but I would love to see a Pioneer Elite looking receiver with XT32. I think something like that would really sell well.:clap:


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## chashint (Jan 12, 2011)

The Pioneer acquisition may influence Onkyo more than Onkyo influences the new acquisition.


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## J&D (Apr 11, 2008)

This is an interesting pairing given Onkyo's recent direction on their AVR's. It would be great if they would combine the benefits of both into a single line but my guess is both lines continue for the near future. What I hope does not happen is they relegate one brand to certain price points only.


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## chashint (Jan 12, 2011)

J&D said:


> This is an interesting pairing given Onkyo's recent direction on their AVR's. It would be great if they would combine the benefits of both into a single line but my guess is both lines continue for the near future. What I hope does not happen is they relegate one brand to certain price points only.


It's impossible to know what direction it will take.
While I would like to see the two brands remain distinctly different and service the entire market it is unlikely that will happen.

At the time Pioneer decided to sell and the acquisition was made there was an article that included the sales values of the Pioneer home electronics division and Onkyo.
The division Pioneer sold off by sales value is larger than Onkyo, but the profit margin at Pioneer is very slim.
Onkyo's profit margin was not published.
There is also a venture capital company significantly involved and that company may want to sell off the physical assets of Pioneer or Onkyo to recoup part of the investment in the short term.
Everything in business at this point in time is all about maximizing shareholder value.
I see no scenario where duplication of engineering or manufacturing will exist longer than it takes for management to figure out where those activities will be located and what the product lineup will look like.


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## J&D (Apr 11, 2008)

Agree that economics will not allow both entities to continue as they are today and having fewer options is always a bad thing for enthusiasts. Sure hope this was not just an opportunity to grab some cash in an asset fire sale.


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## chashint (Jan 12, 2011)

I cannot find the article that had the Pioneer home division financials, but if I remember correctly the profit margin was less than 10%.
The sell off was to put all resources into the automobile audio where the margins were much better.


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