Visit our other websites:    Consumer IT    On CE    eSP    Mobile Channels    rAVe Europe    Digital Signage News EMEA    iChannels

European Custom Installer

System Integration for the Connected Home

Why Sharp Wants Pioneer

  • PDF

Why Sharp Wants Pioneer

 With 14% of Pioneer’ shares, Sharp will now become Pioneer’s biggest stockholder. Sharp will sell less than 1% of its shares to Pioneer to complete the Osaka-Tokyo business and capital alliance.

This Sharp/Pioneer deal demonstrates the on-going re-alignment of Japan's consumer-electronics sector. This year Sony sold off several non-core businesses. Matsushita struck a deal with Kenwood to take JVC/Victor Co. of Japan off its books. Sanyo wants to sell its semiconductor-chip business. Pentax agreed to an offer from lens maker Hoya.

Most companies in Japan's consumer electronics industry compete to sell similar products, limiting revenue growth and profitability. Yes, you can expect more Japan Inc. deals.

Sharp hopes to reduce costs in HD DVD players and enter the car navigation market via this deal. Pioneer, with losses in the last three years, will gain a Sugar Daddy, the backing of a financially-larger organization.

“Our business will remain independent,'' Pioneer President Tamihiko Sudo told press. “Our plasma display business is our core operation, and it will remain so.''

Go to Sharp/Pioneer Alliance