(October 4, 2019) Enthusiasts concerned about a home theater industry dominated by one massive AV receiver giant can release a giant sigh of relief: Onkyo Corporation’s Home Audio Division – which includes Pioneer, Pioneer Elite, Onkyo, and Integra – will live to see another day as a singular entity (at least for now). Just hours ago, Sound United issued a press release saying it has mutually agreed to terminate the proposed acquisition. In the announcement, the company states: “After months of rigorous work and negotiations, it became apparent that all of the necessary closing conditions could not be satisfactorily achieved.”
This announcement comes after months of negotiations, which began during mid-May of 2019. And while a pending deal seemed inevitable, Sound United says that quite a few conditions needed to be satisfied, including finalization of all definitive agreements, completion of satisfactory due diligence, securing of committed financing, and various other required approvals.
Sound United has proven to be a massively positive force in the home theater and 2-channel market, so this departure from acquiring Onkyo could prove to be more harmful than good. One immediate concern is Onkyo Home Audio Division’s financial health; the company says: "The impact on Onkyo's consolidated financial results for the fiscal year ending March 31, 2020 due to the events leading up to the termination of this Transfer is currently being evaluated and will be disclosed as soon as it become clear." Onkyo further states that its intention to sell was to focus business resources in two areas it "believes to have strongest growth potential – Digital Life portable products and OEM products and services targeting the B2B space," while benefiting from licensing royalties agree upon from terms of the sale. Onkyo remains open to revisiting a deal at a future date.