Alpha Theta, the parent company of Pioneer DJ, proposed a merger with DJ software giant Serato in July 2023. However, the New Zealand Commerce Commission (NZCC) has blocked the acquisition, citing concerns over reduced competition in the DJ software and hardware markets.
Dr. John Small, chairman of the NZCC, explained that the merger could substantially lessen competition. The Commission found that Serato and Alpha Theta’s rekordbox software are significant competitors. Allowing the merger could lead to dominance by a single entity in the market, potentially resulting in higher prices and lower quality for consumers.
The NZCC’s investigation indicated that other DJ software providers would not sufficiently counterbalance the competitive impact of the merger. The Commission concluded that this consolidation could diminish competition, affecting both pricing and innovation in DJ software.
Both companies are expected to appeal the decision. Yoshinori Kataoka, President and CEO of AlphaTheta, expressed disappointment with the ruling. He emphasized that the merger could have leveraged the strengths of both companies to enhance products for DJs and producers globally.
Despite the setback, Kataoka highlighted the long-standing partnership between AlphaTheta and Serato, and reiterated the companies’ commitment to advancing DJ technology.
In a related development, the UK’s Competitions and Markets Authority (CMA) conducted a “phase one” investigation into the merger in May. The CMA’s initial findings echoed similar concerns, noting that the deal could create a dominant supplier, affecting price, quality, and innovation in the DJ software market.
Earlier this year, AlphaTheta Corporation announced its new brand for DJ products, continuing its commitment to innovation and leadership in the DJ industry.