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Cash-strapped plasma maker Pioneer originally turned to Matsushita (parent of Panasonic) for financial assistance, before securing its deal with Sharp, it’s been revealed. Matsushita declined to offer support but Sharp opted to buy 41.1 billion yen in Pioneer shares, giving it a stake worth 14 per cent. In return, Pioneer has taken out a 0.9 per cent stake in Sharp, costing it 19.75 billion yen.
While it’s possible Panasonic viewed Pioneer as a key rival, Sharp has limited crossover with Pioneer’s business, which is predicated on the sales of large plasma panels and sat nav products. It’s thought that Pioneer can also help Sharp strengthen its audio business and develop Blu-ray products.
The move is just one of several ‘strategic alliances’ announced recently by Japanese companies: JVC has entered into a partnership with Kenwood and Sony is on the verge of a joint venture with Toshiba.