Popular tech company Pioneer has confirmed the sale of it’s DJ equipment arm to US investment company Kohlberg Kravis Roberts following rumours last week.
The sale is said to have cost over half a billion dollars at a cool $551 million with Pioneer opting to continue research, development and sales into the car audio sector that has had continued explosive growth in Japan while divesting the DJ arm of things.
Chief Executive and President Susumu Kotani said at a press conference on Tuesday “We realised we wouldn’t be able to invest in the DJ business so it would be better to spin it off and grow it independently.” adding that the company was indeed profitable with an operating margin of 20% while continuing their 60% share of the global market.
KKR will look to drive the already popular DJ tech side of things that already produces a number of unique pieces of hardware for the dance industry including newly announced controllers, ‘pro dj’ headphones and modern vinyl turntable.
What does this mean for the dance community?
Only good things in hopes that KKR gives the DJ equipment arm the right tools to continue its extraordinary reach especially here in Australia that punches far above its weight on the world scale in terms of sales and use of the club spec hardware.
If the Pioneer (parent company) we’re investing too heavily into the car audio side of things while at the same time ignoring the obviously popular DJ trend there could have been stagnant results for Pioneer DJ in the next 12-24 months.
All in all, definitely nothing to be worried about, in fact quite the opposite with the now independently funded tech company free to continue growing worldwide!
Thanks once again to Pioneer DJ for supporting the first ever Stoney Roads Awards that saw Motez take out ‘Producer of the Year’ and Just A Gent with his ‘Breakthrough Producer of the Year’ title co-presented by Red Bull.