Citing Competition Concerns.
Alpha Theta, a parent company of Pioneer DJ, faced a setback as the New Zealand Commerce Commission (NZCC) rejected its acquisition of DJ software company Serato. Proposed last July, the merger aimed to integrate Serato into Alpha Theta.
Dr. John Small, NZCC chairman, explained that the Commission was not satisfied that the merger would not substantially lessen competition. The NZCC found the merger would give Alpha Theta dominance in the DJ hardware and software markets.
The Commission stated that evidence indicated that Serato and rekordbox are close competitors. Other DJ software providers could not sufficiently replace the lost competition. The merger could lead to higher prices and lower-quality software.
Both companies intend to appeal the decision. Yoshinori Kataoka, CEO of Alpha Theta, expressed his disappointment and stated that they disagree with the NZCC’s ruling. He believes that the merger would have enhanced their capability to provide exceptional products to DJs and producers more quickly.
Kataoka emphasized the collaborative history between Alpha Theta and Serato, “Despite the regulatory findings, our organizations have a long history of working together and we steadfastly believe in the merits and benefits of our ongoing partnership as we seek to harness technology to advance the ways artists create and perform music.”
The UK’s Competition and Markets Authority (CMA) also found that the deal could create a supplier nearly twice the size of its nearest competitor, potentially affecting price, quality, and innovation of DJ software.
