Gibson Guitar buys stake in Onkyo Japan
NASHVILLE, Tenn —
As part of its continued diversification into the music and audio lifestyle arena, Gibson Guitar Corp, the world’s premier musical instrument manufacturer, on Wednesday announced a strategic partnership with Onkyo Corp, a worldwide leader in consumer audio.
Gibson will provide Onkyo with its marketing resources and expertise. The result will be an ability to deliver a far superior audio experience to the consumer who has become more and more used to hearing only inferior compressed music through inexpensive ear bud headsets.
Through this venture, Gibson will acquire a majority of Onkyo USA (Onkyo’s exclusive distributor for North America and a distributor for Central and South America) and become the second largest shareholder in Onkyo. Gibson will make a strategic investment in the company, and Gibson Chairman and CEO Henry Juszkiewicz will be given a position on the Onkyo board of directors.
Likewise, Onkyo will invest in Gibson, and CEO and President Munenori Otsuki will take a position on the company’s board of directors. Together, the two entities will form a Hong Kong-based joint venture focusing on design and development of unparalleled consumer audio products. Through this alliance, Onkyo USA becomes the latest addition to the Gibson Pro Audio division, which already includes KRK, Cerwin-Vega! and Stanton.
“Onkyo makes some of the world’s best audio equipment, and this partnership will give Gibson the ability to bring a deeper and more enhanced audio experience to music lovers around the world,” says Juszkiewicz. “While people may be listening to more music, they are listening to it primarily in a severely compressed format. The aural disparity between a real system and compressed sound is vast, and as a result, they are simply not hearing tremendously rich sounds. With Onkyo, our goal is to bring the same exceptional experience artists demand in the studio to a larger consumer base.”
“This partnership has significant positive implications for Onkyo as we are always seeking ways of creating new value,” says Otsuki. “Gibson is a leading global company with a massive fan base, best-in-class products and superior marketing skills. Coming together in this way opens the door for amazing opportunities for both companies and, more importantly, fans of Onkyo and Gibson.”
All agreements are subject to Japanese regulatory clearance, negotiation of definitive agreements and financing approvals of lenders.
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6 Comments
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cactusJack
Onkyo tube amps coming our way?
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gyouza
I've neverb been particularly impressed by Onkyo gear. As the article suggests, more and more people are listening via headphones and I think this is key. People are moving away from sitting down and enjoying the depth of music and using it more and more as a background to their daily life. People are just changing habits and I suspect the market for audiophile eqipment will shrink radically (even more).
Hope I'm wrong, but I suspect that Gibson may not have made the best investment here.
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wanderlust
Except for the guitars, these seem to be B-list equipment makers, and not on any audiophiles' shopping list. Onkyo has always been a budget/ no-name brand here in Japan. But I''ve seen more people buying good audio equipment of late, as they go out less, and often use it with "home theatre" systems.
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tokyokawasaki
Gibson Les Paul and a Marshall all valve amp is a match made in heaven. I doubt Onkyo will ever be able to get in on that act...
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JeffLee
I've got an Onkyo budget mini audio system. I'm impressed with the build quality and its minimal use of plastic.
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hatsoff
Like others here, I'm struggling to see a strong connection and synergy between these brands, unless Onkyo are planning to introduce some home recording gear, which might interest guitarists. As for people shopping on the High Street, I can't see the pull of Gibson for them. Onkyo's brand image doesn't seem especially high in Japan, maybe it's different in the USA.
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