Harman buys Sound United

Mike

Mike

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Harman Closes Sound United Deal | Stereophile.com

Harman today said it has completed its acquisition of Sound United, adding Bowers & Wilkins, Denon, Marantz, Classé, Definitive Technology, Polk Audio, and Boston Acoustics to its portfolio. “This transaction unlocks meaningful growth opportunities for everyone,” said Dave Rogers, president of...
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They say they will keep Classe. So maybe some growth there someday.

I see Harman making their money back on selling the name brands to auto companies. OEM, right?

I suppose all companies may do it but I don't like the term "cross pollination". On one hand they say the brands will remain independent, at least in the beginning, then they mention that term. I don't want to see an audio company looking like GM where you have different badges but basically the same under the hood.
 
You can look at Massimo earnings reports that break out the Sound United segment and see that Harman probably paid too much for it.

Massimo wrote off over $300M in 2024 before putting SU on the block, probably goodwill.

First 9 months of 2024: Revenue ≈ $465.6 million vs $562.1 million prior year; Net loss ≈ $31.3 million vs $21.2 million prior year.

Harman will have to pull massive costs out of Sound United to keep it as a profitable stand alone as they claim thy are doing. It’s unlikely long term.
 
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