Harman To Acquire B&W, Denon, Polk And Marantz From Masimo In $350 Million Deal


just saw the above announcement--of particular note is that masimo paid over a billion for the same brands just a few years ago. not sure whether harman will add any value--they've neither hurt nor helped revel or arcam--or what this move indicates about the consumer audio market generally, but this doesn't bode well for the future.

loomisjohnson

If there is not profit to be made, why would any company continue?  Is mylogic willing to personally pay to keep a losing business alive?  

Businesses are acquired usually because the price is low due to an ineffective business strategy or mis-management.  Either way they are losers and not likely to survive on their own.

Healthy companies with good strategy and management serve their employees and customers well. An undeniable lesson we've learned from Warren Buffett.

 

@coppy777 

“Profit” and your stupid assumption.

l never said anything about any of these companies becoming insolvent, or even likely ever to be.

This is about an offloading from an incompetent controlling large corporation who arguably have not made a big enough profit, or have mismanaged the individual businesses.

An example of one of the said businesses is AKG. Previously a subsidiary of Philip, AKG still supply exceedingly good headphones since offloaded by Philips who moved away from the “hi-if” marketplace. The danger of takeovers are that some of these businesses being absorbed. With the possible duplications of similar products, some of these brands may fall by the wayside.
@loomisjohnson said exactly the same with his prediction. “This doesn’t bode well for the future”

@realgoodsound  was spot on too. The Denon and Marantz duplication of competition with their products is an example of the two brands possible futures. One “Brand discontinuation”

You answered my concerns with your paragraphs two and three. What was your point in pointing a finger at me? I can’t do anything about it!

As always, market trends, innovation, and the willingness of entrepreneurs to invest, will ultimately decide what is available to the consumer.  The serial acquisition and consolidation of smaller companies by bigger entities is not that unusual these days.