JVC may sell tunes unit, buy Pentax

JVC Kenwood Holdings Inc. is considering selling its music software company Victor Entertainment Inc. while buying the Pentax digital camera unit of optical glass maker Hoya Corp., sources said Wednesday.

Potential buyers of the Victor Entertainment include major video game software developer Konami Corp., the sources said.

The JVC Kenwood has Victor Co. of Japan as a subsidiary, which is holding 20 percent of the world market of video camcorders, following only Sony Corp.

Combining the still-image camera unit of Pentax and its own camcorder business would generate synergy effects and improve the firm's competitiveness, the sources said.

Hoya absorbed Pentax through a takeover bid in 2007, enjoying synergy effects mainly from Pentax's medical-related devices business.

Meanwhile Victor Entertainment, a wholly owned subsidiary of Victor Co. of Japan, is widely known for the raft of famous bands and artists on its books, including the Southern All Stars and SMAP. It ranks fourth in the Japanese music software industry after Universal Music LLC, Avex Group Holdings Inc. and Sony Music Entertainment (Japan) Inc.

JVC Kenwood, established via management integration between JVC and Kenwood in October 2008, has been suffering poor earnings during the global recession, the sources said.