Matsushita negotiating to sell JVC to Kenwood

Digigenic

Digigenic

Well-known member
Figured many of you would find particular interest in this article, considering Panasonic's relationship with JVC.
via The Japan Times
Sunday, Dec. 24, 2006

Matsushita negotiating to sell JVC to Kenwood
Compiled from Kyodo, AP

Matsushita Electric Industrial Co. has decided to sell its stake in Victor Co. of Japan and is negotiating with prospective buyer Kenwood Corp., sources said Saturday.

Matsushita, which has a 52.4 percent stake in JVC, plans to complete its latest round of structural reforms by removing JVC from group earnings, the sources said.

JVC President Masahiko Terada is believed to have met with Kenwood President Haruo Kawahara earlier this month.

The sources said there is another proposal on the table which calls for JVC executives to acquire the shares from Matsushita through a management buyout, the sources said.

Cerberus Group is negotiating with JVC executives to provide the necessary capital for such a deal, they added.

JVC, the pioneer of VHS-format VCRs, was once a strong player in consumer electronics. However, its earnings have tapered off due to mounting competition.

It suffered a 30.6 billion yen group net loss on 806.8 billion yen in sales for the business year that ended last March 31.

By acquiring JVC, Kenwood would seek to use the Victor brand to strengthen its own video and audio lineup, the sources said.

"Our policy to closely watch the operation of Victor, which is making its utmost effort for a business recovery, has not changed," a Matsushita spokesperson said. "Nothing is decided about the sale."

Matsushita spokesman Akira Kadota however acknowledged that JVC is the only Matsushita subsidiary which is in the red. "There are many options, and a sellout is one of them," he said.

Established in 1927, JVC joined the Matsushita group in 1954 and produced such hit items as color television sets and VCRs. It had about 28,500 employees as of Sept. 30.
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very likely to be the whole enchilada.
even though there's hardly any details, I don't think it would really peak another big player's interests unless it was the full plate.
 
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Theres a Mod named DeBranne????? Sorry, i just never seen you before.. :)

Thats funny that Matsushita basically owns JVC.... CAuse they own panasonic too dont they?
 
Yes, Panny and JVC are owned by the same company.

Also related is the entire GE Group; GE [duh], NBC-Universal, RCA...

- Mikko
 
Given the spectacular quality and price/performance of both Panasonic's professional and consumer products, and the lackluster JVC product introductions over the past few years (especially in the consumer space) I can see why Panasonic would want to finally jettison the JVC operation. Competition is getting very tight. What technology could JVC have that Kenwood wants? Interesting.
 
cinemakinoeye said:
Given the spectacular quality and price/performance of both Panasonic's professional and consumer products, and the lackluster JVC product introductions over the past few years (especially in the consumer space) I can see why Panasonic would want to finally jettison the JVC operation. Competition is getting very tight.
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Yes. But competition is getting tight because everybody's expanding.
This move would indicate Panasonic is trimming up.
Are they going to pour everything into Panasonic and beef it up like a spoiled only child, or will it be reallocated to a new division, or a new partnership, maybe get closer with Leica, Olympus maybe?
It seems strange, but at the same time it makes sense considering JVC's performance.
cinemakinoeye said:
What technology could JVC have that Kenwood wants? Interesting.
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That's a good question, but then again, maybe it has more to do with raw resources than new technology.
 
Interesting solution to the JVC dilemma. JVC has been a drain on Matsushita's revenues for quite a while, and the JVC/Panasonic relationship has always been curious -- sometimes they sell an identical product (like the BR-DV3000/AG-DV2500 decks) and sometimes they're mortal blood-enemy competitors. There was speculation six months ago or so as to whether Matsushita would just shut JVC down and discontinue the brand entirely; selling off to someone like Kenwood would probably be a good thing for the brand; at least it'd be better than having them shut down.
 
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