Pioneer Selling DJ Gear Business for $570 Million

[Cupe]

In a bizarre and unexpected turn of events, it seems the world-renowned CDJ and mixer manufacturer Pioneer is looking to sell its entire DJ equipment franchise. The current starting price is $570 million, which makes some sense considering the prevalent use of CDJs and DJMs in nearly every club and festival environment.

With these all-Pioneer setups as the industry norm, it makes you wonder; why are they selling it, and who would buy it? It seems as though the Japan-based company is looking to consolidate its efforts in automotive electronics, leaving behind its other non-core assets and businesses. As for potential buyers, there’s no official word from Pioneer at the moment, but surely we will see the fruits of the sale in the near future.

Who do you think will pick it up? If Native Instruments, the second leading DJ equipment manufacturer, were to place a bid, we might see some sort of fusion of Pioneer technologies with the Traktor brand. It’s frankly quite difficult to think of any other potentially interested buyers.

Source

[OxyKon]

That would be dope if NI bought it

[Scottie]

http://djworx.com/pioneer-dj-sale-official-response/

m8 pls

[Cupe]

[yizzle]

That would be dope if NI bought it

i cant see NI buying Pioneer as a good thing at all imo..

[LabRat]

NI buying pioneer would actually suck tbh. With some luck denon and a&h will be able to find their way through, and that'll be mad

[SolDios]

I hope they sell it to someone who knows the meaning of durability

[Cupe]

Why would they even sell it?

They're an industry leader, and they'd make more than 570mil in a year(?)

[Scottie]

nah i doubt they'd make that much, the DJ gear market is starting to stagnate - what was the last thing you saw coming from any of the big players that made you want to go out and buy it? Especially considering how the used market for older gear will only continue to grow as people move on from traditional decks+mixer setups to controllers and other midi devices.

[BeatLeSS]

Why would they even sell it?

They're an industry leader, and they'd make more than 570mil in a year(?)

I smell a stock exchange reason. Quick, someone find me the details of their stocks!

[Cupe]

nah i doubt they'd make that much, the DJ gear market is starting to stagnate - what was the last thing you saw coming from any of the big players that made you want to go out and buy it? Especially considering how the used market for older gear will only continue to grow as people move on from traditional decks+mixer setups to controllers and other midi devices.

There much be loads of rich kids buying the plastic all-in-one units they keep bringing out at huge prices.

It's the new toys

[eggssell]

apple buys beats which new age dj's are using.

nek minit....

[Kodiak]

Why would they even sell it?

They're an industry leader, and they'd make more than 570mil in a year(?)

Typically a business's worth is generally about 3 to 5 times their annual profit plus assets (plant, equipment, stock on hand etc). Not sure if still applies to this scale though?

[eggssell]

yeh 3 times for stable

and 5 times if can show growth curve

and then only buy if potential to grow. i.e buy 3 times if you think you can improve so you make your money back sometime in that second year