Gibson (as in guitars) acquires stake in Onkyo

Danny Tse

Bet you didn't know Gibson also owns Cerwin-Vega!

Nashville, TN. January 04, 2012: As part of its continued diversification into the music and audio lifestyle arena, Gibson Guitar Corp., the world?s premier musical instrument manufacturer, today announced a strategic partnership with Onkyo Corporation, a worldwide leader in consumer audio. With a reputation of excellence for high quality audio equipment and home theater systems, Onkyo offers Gibson?s newly-formed Pro Audio Division substantial technology resources. 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 Corporation. 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.

sda2mike

i hope sometime in the future, someone opening up their les paul doesn't hurt themselves from the shock of 'made in japan'...

halo71

Interesting news. I mean hell....you can only make so many "Signature" LP's I guess. Same ole' same 'ole' with ridiculous pricing.....IMO of course. Guess the high end guitar market just ain't what it used to be.

And no, I can not afford an LP! :cheesygrin:

skrol

What is it with Onkyo and guitar companies. There was the Onkyo D-TK10 Takamine speaker, now Gibson.

VR3

They also purchased the Stanton Group (Cerwin Vega, KRK, etc)

Dennis Gardner

Being both a musical instrument store dealer and avid home audio/HT buff, I find the relationship strange at best. I know that Gibson has a valued name in musical circles, but most of the targeted "compressed audio" customers either can't afford a Gibson guitar or refer to their Epiphone import as their "Gibson". They most likely wouldn't be able to pronounce Onkyo or know anything of its origins.

I could think of a number of "names" in audio circles that would be a better fit for Gibson. Doesn't and All-American brand name like Harman/Gibson, JBL/Gibson, Gibson/Marantz have more heritage and cache, or am I wrong. I simply think Gibson need to unload some cash.

Then again, Fender and Marshall both having factory automobile systems is way beyond my marketing understanding..........

[Deleted User]

Dennis Gardner wrote: »

"compressed audio" customers

LOL, I'll need to save that one for later, funny stuff. Cheers. :cool:

mantis

I owned 2 Les Pauls , I feel they are over priced.

skrol

nap wrote: »

"compressed audio" customers
LOL, I'll need to save that one for later, funny stuff. Cheers. :cool:

Or is it compressed "audio customers"?

sda2mike

at least they waited till lester left the building

unc2701

Dennis Gardner wrote: »

Then again, Fender and Marshall both having factory automobile systems is way beyond my marketing understanding..........

I just saw a commercial with the Fender-branded car stereo and my head nearly exploded. I can't begin to think what they had in mind with that one.

mantis wrote: »

I owned 2 Les Pauls , I feel they are over priced.

What years- and were they chambered? Gibson can't seem to get the chambering right on the LP. And I've found there's a lot of variability in the LP's... but pretty much agree overall. Will take my Gretsch 6129 over a Les Paul any day.

m60cs2

I noticed Fender was putting stereos in VWs. I thought that was weird.

heiney9

The funniest part of that press release:

Onkyo makes some of the world's best audio equipment

Since when? World's best??? Has to be some kind of joke. That is some funny **** right there.

H9

mrbigbluelight

skrol wrote: »

What is it with Onkyo and guitar companies. There was the Onkyo D-TK10 Takamine speaker, now Gibson.

I'm glad you mentioned that Onkyo speaker model number, Skrol, to refresh my memory. Up until about a year ago, the shoponkyo.com site had it listed for sale ($2K). It's no longer there, although if someone is interested in purchasing a pair, there's one listed on Ebay
( http://www.ebay.com/sch/items/onkyo%20d-tk10?_dmd=2&_cpr=249&clk_rvr_id=305012363489&MT_ID=70&crlp=19374466895_9406&tt_encode=raw&geo_id=1&keyword=onkyo+d-tk10&adgroup_id=4994699975 )

I'd have to agree that the statement, "some of the world's best audio equipment" being a little over-exaggerated.
Onkyo makes good stuff; "good", not "GOOOOOOOD ! stuff, but "good" .
Good value for the money, don't have to hide it from the neighbors, gear that'll hold down the fort until one's wallet gets a little fatter..

Interesting the experiment that Onkyo took with Takamine: a speaker where the enclosure is purposely designed to resonate like a guitar body ? Don't see how that experiment didn't turn out to not produce something that sounds like a goose in heat, but ... supposedly it worked. If nothing else, it's kind of nice to see a company try something innovative instead of playing it safe with cookie cutter approaches.

... but at 80 db efficiency at 4 ohms, you better have something bigger/better/badder than an Onkyo AVR to drive them.

Hope that cash rich Gibson doesn't come into Onkyo and fudge up the place, but uses their money to free up some innovative thinkers at Onkyo to come up with some awesome gear.