TPG buying JVC

[garyjo]

Just saw this news posted on another forum.
May be of interest to the many "JVC fans" here.

http://www.camcorderinfo.com/

[DVWannaB]

this explains a lot why the JVC DVD Recorder market has been bone dry for some time.

[lordsmurf]

JVC has long been treated like a red-headed stepchild by Matsushita, while Panasonic is the more-loved sibling. As the article states, this could be good. JVC does develop a lot of technology for the world, but would never cash in early enough (very similar to Pioneer and it's now-gone PVC).

[SingSing]

Normally a private group buy a company because they think the current parent is not giving the "Step Child" the support for the best return.

[next]

My take on this is that the private equity firm will begin to immediately sell off assets. This is typical with a private equity acquisition and makes the purchase price more manageable. It is the only way to do something like this and I am sure the pro forma financial statements reflect this. A private equity firm has no shareholders to answer to. Only themselves. Which makes down sizing a lot easier. Once this is accomplished I see the JVC brand being expanded/exploited. I don't think it will be long before we start seeing JVC coffee makers and crock pots. Well maybe not crock pots but cheap products like portable cd players. Think Walmart's Durabrand with a JVC label. Much more consumer appeal with the JVC label. Much of it coming from China. Perhaps a retention of its high end stuff - maybe. But the company is failing right now.

Once the company is healthy again from an income statement and balance sheet perspective you might see a new public offering. The private equity firm will sell a portion of the company to the public markets while retaining a portion of the company - the controlling interest. With a nice profit being the result.

It happens all the time

Who ever thought we'd ever see a Black and Decker toaster. Or a Polaroid portable DVD player.

[DVWannaB]

next,

excellent points taken. Food for thought.