Olympus announces intent to sell imaging business to JIP

[WhidbeyLVR]

https://www.olympus-global.com/ir/data/announcement/2020/contents/ir00013.pdf

Memorandum of understanding for divestiture of imaging business to JIP (Japan Industrial Partners).

 

[0000]

OMG I AM SO SHOCKED

 

[Jeroen81]

F*ck.
I'm not happy with this news. But hope the new owner can turn things around. I'm not ready to sell all my Olympus equipment.

 

[pake]

Wow! This is really bad. I bet Tony Northup is on cloud 9 now...
Well... At least my E-M5III (and all the lenses) will still work even if the new owners decide to pull the plug in a few years. Guess I need to get a backup body (or two) before they do so.

Just wondering what happens to the name.... Olympus is a very well known camera brand but if they need to change it to "NewCo" or something, they are definitely finished.

 

[Angus Gibbins]

Wow! This is really bad. I bet Tony Northup is on cloud 9 now...

Why would he be on cloud 9? Just because he's predicting it doesn't mean he wants it to happen. He's not a narcissist.

Olympus collapsing would be bad for everyone. Any camera brand collapsing paints a perception that photography is a struggling industry (which it is at the moment). It makes shareholders of other companies raise questions about what their money's doing.

This isn't great but hopefully they can turn it around. Remember the world's in an unprecedented time at the moment. I'm surprised Nikon hasn't gone down yet TBH.

 

[pake]

He's not a narcissist.

 

[apete]

JIP, is that not the same that bought Sony Vaio a couple years back?

 

[retiredfromlife]

Well this may make it harder to sell the 100-400 now.
Real shame

 

[Mike Wingate]

All change, but from the financial figures, this was expected from many. It may delay the new roadmap. Does it explain the limitations of the new products, a reason why they are not as groundbreaking as they should have been? Disappointed.

 

[ibd]

Well this may make it harder to sell the 100-400 now.
Real shame

Also makes it harder for the users to buy it, with new firmware updates for existing bodies or new bodies altogether becoming uncertain. Who would invest in a potentially dead system?

 

[Jeroen81]

All change, but from the financial figures, this was expected from many. It may delay the new roadmap. Does it explain the limitations of the new products, a reason why they are not as groundbreaking as they should have been? Disappointed.

Who knows but I sure hope Jip can turn things around for Olympus MFT and MFT in general.

 

[RichardC]

F*ck.
I'm not happy with this news. But hope the new owner can turn things around. I'm not ready to sell all my Olympus equipment.

Why would you? Would you sell your lawnmower if the manufacturer changed ownership?

 

[pake]

Who knows but I sure hope Jip can turn things around for Olympus MFT and MFT in general.

Highly unlikely. If a well-known brand called Olympus couldn't "hack it" there's no way in hell a company called "JIP" or "NewCo" can challenge brands like Nikon, Canon, Sony, Fuji. It's all about the reputation. Just look at the first Canon mirrorless cameras that were a joke yet they still sold millions of them. The brand is everything in this business.

 

[Angus Gibbins]

JIP has strong track records in supporting strategic carve-outs that realize growth potential and encourage autonomous growth. By adding support from JIP, the NewCo, as the successor of reputable brands such as “OM-D” and “ZUIKO,” will utilize the innovative technology and unique product development capabilities which have been developed within Olympus, and will realize continuous growth of the business by bringing better products and services to the users and customers and by making itself a productive and rewarding work place for its employees.

Interesting... I wonder what this means for branding and marketing. Is this an awkward translation or will brands be retired?

 

[ibd]

Now that this is happening to Olympus, I'm starting to think the predictions for Nikon doing the same might also be true. I hope not!

 

[Angus Gibbins]

If a well-known brand called Olympus couldn't "hack it" there's no way in hell a company called "JIP" or "NewCo" can challenge brands like Nikon, Canon, Sony, Fuji. It's all about the reputation.

Really depends on what agreements they have with branding and marketing. There's a lot we don't know about what happens going forward.

Now that this is happening to Olympus, I'm starting to think the predictions for Nikon doing the same might also be true. I hope not!

I think Olympus (with the 150-400mm) and Nikon (with the D6) took a pretty big hit with the Olympics being postponed. Olympics is a pretty big part of the marketing stories behind these two products, clearly they wanted them both out right beforehand.

 

[Jeroen81]

Why would you? Would you sell your lawnmower if the manufacturer changed ownership?

No.
But if there is no new development within the Olympus ecosystem I will sell.
But for now, I will just wait and see what happens. Still planning on buying the 100-400.

 

[Angus Gibbins]

Interesting... I wonder what this means for branding and marketing. Is this an awkward translation or will brands be retired?

The more I think about it, the more this seems like a rough translation. I think it means the successor as the owner of reputable brands.

I don't think the Olympus name is going anywhere (unless this company fails in the long run) Olympus Imaging is just no longer owned by Olympus Corporation. I think they'll still be branded as Olympus.

 

[pake]

No.
But if there is no new development within the Olympus ecosystem I will sell.
But for now, I will just wait and see what happens. Still planning on buying the 100-400.

It'll take a year or two (or even more) to see whether there will be new development or not. Long time to just wait and see. I will also buy the 100-400mm if the quality/price-ratio is good enough and will not stop spending money on products I feel my photography needs.

I don't buy cars and wish they keep their value so I could sell them later. Same goes for camera gear. If you want things to keep their value, buy arts or something.

 

[apete]

I have heavily invested in the Olympus system the last year, but I am far from panic. I do not believe JIP would pay for a business to just close it. It is more a matter of further restructuring. Also, I believe the Olympus name for the cameras will stay with us. Keep in mind you can still buy VAIO laptops 6 years after Sony sold the business, and JIP is still owner of VAIO.