In its latest attempt to stave off financial ruin, Japan’s Onkyo Home Entertainment has once again turned to the option of selling its core business.
At the end of last week, she announced that she had begun negotiations with the Japanese company Sharp and the American company Voxx International. These companies are potential buyers of the home audio and video business, which includes the Pioneer brand.
Founded in 1946, Onkyo was once renowned for loudspeaker, turntable, and stereo receiver manufacturers, but has only worsened its position since its first failed attempt to sell its audio business in 2019 to the American company Sound United. It now faces exclusion from the Tokyo Stock Exchange listing as the company’s net worth is negative for the second year in a row.
With Onkyo’s stock likely to be withdrawn from trading around July, the company “began to consider all possible options for maintaining business continuity.” Describing Sharp and Voxx as “suitable” partners with whom it previously worked in the audio equipment area, the company said it intends to reach a formal agreement on the deal by May 20.
A Sharp spokesman confirmed that the company is considering Onkyo’s offer.
In the above deal, which failed in 2019, Onkyo’s business was valued at $ 73 million.