Friday, May 25, 2007

Additional bloggotage on the Runco/Planar deal

CE Pro has some good points today following up on Planar's purchase of Runco that I discussed yesterday.

CE Pro: Planar's Acquisition of Runco: No End to the Party

Notably, there's some concern from commenters that this will have a negative impact on Runco's distribution, and service to high-end dealers.

Looks like the big loser here will be any dealer selling Vidikron. That brand was always confused, like an ugly step-sister. Now, with new parents, it looks like Vidikron will vulnerable and Planar will be the mass-market brand. Runco will always stand for high end, not PC monitors. I'd be worried, too, about the long-term branding commitment of an industrial display company with executives who used to work for business projector and a PC printer companies. I give it 18 months before you see "CineWide at AVAD".

And as I commented on their page:

Additionally, digging into PLNR's fundamentals as I was earlier, they seem to be adrift, and lacking real focus or direction. I hope the aquisition of Runco is a kickstart that puts them back onto a winning path, as opposed to being a costly distraction from their main business.

Time will tell if Planar can maintain Runco's winning formula, or if the message will get lost. It would be a shame if that happened.

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