Pioneer DJ being sold? What does this mean for my Gear?
http://www.reuters.com/article/2014/09/03/pioneer-asset-idUST9N0OU01S20140903
Love how THIS does NOT make the announcements. Hopefully this does not mean even more bad news.
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It will break down instantly....
Deal is done:
http://www.reuters.com/article/2014/09/16/us-pioneer-asset-idUSKBN0HB0G820140916
For Pioneer, it Affects 700 employees (but that number is split between the AV division being pushed out to Onkyo, and the DJ division) I have not seen the number of DJ employees broken out separately, and have yet to find where this can be extrapolated.
Also spilled was the DJ division's revenue of $202 million US, so the price was just shy of 3x revenue (slightly in bargain territory) which is especially strange considering the reported 20% operating margin. It is said Pioneer's revenue represents 60% of the global DJ market, about $600mm total. The multiplier to margin to market share figures indicate we should expect "interesting times" ahead now that the bean counters own it.
***oops, I meant the dj market was $300m total...had 6 on the brain.
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