Pioneer May Sell Its AV Equipment Business: report
Pioneer is reportedly in talks with Funai Electric and other buyers to sell its audiovisual equipment segment, according to a Nikkei report. The report added that suitors have been negotiating with Pioneer through financial institutions, discussing the value of the company's global brand as well as its production and sales networks.
Responding to the report, Pioneer said that it is currently considering "every possible measure for thorough review of its home AV business, such as alliances in cluding partial sales of its shares in subsidiaries." However, it sad that no decisions have been made, with any particular third parties including Funai Electric Co., Ltd.
Selling its AV Business unit could help Pioneer focus on its more profitable devices for automobiles.
The company's AV equipment business, including such products as home theater systems and Blu-ray Disc players, generated 108 billion yen ($1.04 billion) in sales -- roughly 20% of the company's total -- in fiscal 2013. Operating profit came to 100 million yen. Pioneer would likely hold onto high-margin parts of the business like DJ equipment.