Samsung Completes Harman Acquisition for $8 Billion - AVS Forum | Home Theater Discussions And Reviews
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post #1 of 19 Old 03-13-2017, 10:55 AM - Thread Starter
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Samsung Completes Harman Acquisition for $8 Billion

It's official, Samsung now owns Harman. Purchased for $112 per share, the final cost was $8 billion. Click the link to read more: http://www.avsforum.com/harman-acqui...tock-delisted/

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post #2 of 19 Old 03-13-2017, 12:36 PM
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Big acquisition and always with M&A's you either make the brand stronger, sell off the parts for profit or jettison the parts you don't want. I hope this makes room for some of the newer or smaller players. There's a lot of small brands that make great products, but get little exposure.

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post #3 of 19 Old 03-13-2017, 05:01 PM
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Bye-Bye H-K! It was a great run while it lasted. But let's face it. When Sidney died...it was "game over" for this venerable company. Their AVR's...ending with the 7550HD, Lexicon/Logic 7 processing, Citation separates and Infinity ribbon Tower speakers were legendary great.
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post #4 of 19 Old 03-14-2017, 06:15 AM
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Best case scenario Samsung stays mostly hands-off with the core audio business and just gives the engineers and product development teams a blank check to redouble their R&D.

Worst case scenario Samsung pivots the companies even more towards 'lifestyle' products like Bluetooth speakers and sound bars until once proud brands are a shell of their former selves.

Time will tell.
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post #5 of 19 Old 03-14-2017, 06:50 AM
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Best case scenario Samsung stays mostly hands-off with the core audio business and just gives the engineers and product development teams a blank check to redouble their R&D.

Worst case scenario Samsung pivots the companies even more towards 'lifestyle' products like Bluetooth speakers and sound bars until once proud brands are a shell of their former selves.

Time will tell.
Sadly, my money is on the latter. There are a lot more cars, living rooms, kitchens, and bedrooms to be filled with cheap Bluetooth devices with that renowned JBL logo. Lets not forget all the high-fidelity ear buds too I think its game over for the pro/cinema divisions. I truly hope I am wrong.
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post #6 of 19 Old 03-14-2017, 06:56 AM - Thread Starter
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Sadly, my money is on the latter. There are a lot more cars, living rooms, kitchens, and bedrooms to be filled with cheap Bluetooth devices with that renowned JBL logo. Lets not forget all the high-fidelity ear buds too I think its game over for the pro/cinema divisions. I truly hope I am wrong.
As long as Crown and JBL are profitable, those brands are not going anywhere
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post #7 of 19 Old 03-14-2017, 07:11 AM
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As long as Crown and JBL are profitable, those brands are not going anywhere
I have no doubts the JBL name will not go anywhere. I am concerned what it will represent in the future. The number of companies that have been purchased by large conglomerates for the name to only have that name applied to inferior, mass produced products is just too long and distinguished for me to not be cynical in my forecast of JBL pro divisions future. It would be interesting to see if the M2, 708, 705 lines have been profitable and recouped all the engineering costs that went into those products. They appear to have good market penetration into the studio market. It would also been interesting to see how much cheaper lines like Behringer have eroded Crown's market share.
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post #8 of 19 Old 03-14-2017, 07:31 AM - Thread Starter
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Originally Posted by Molon_Labe View Post
I have no doubts the JBL name will not go anywhere. I am concerned what it will represent in the future. The number of companies that have been purchased by large conglomerates for the name to only have that name applied to inferior, mass produced products is just too long and distinguished for me to not be cynical in my forecast of JBL pro divisions future. It would be interesting to see if the M2, 708, 705 lines have been profitable and recouped all the engineering costs that went into those products. They appear to have good market penetration into the studio market. It would also been interesting to see how much cheaper lines like Behringer have eroded Crown's market share.
The flip side is Samsung is such a beast, and it takes on industrial-scale projects (shipbuilding, gas drilling platforms). So pro audio and AV might slot into its business model in ways we are not thinking of at the moment.

My impression is that Samsung plans to bolster the pro audio lines, that was explicitly referenced in some of the press releases surrounding the original announcement.

Also, last year when I took a trip to visit the company's truly impressive audio research facilities in California—that was already stocked with Harman alumni— the person running the facility said that Samsung's explicit goal was to up its audio game to the point where it is thought of in the same way as Bowers & Wilkins.

Lofty goal, but buying Harman was like engaging warp drive when it comes to achieving it.

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post #9 of 19 Old 03-14-2017, 07:35 AM
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Originally Posted by Molon_Labe View Post
Sadly, my money is on the latter. There are a lot more cars, living rooms, kitchens, and bedrooms to be filled with cheap Bluetooth devices with that renowned JBL logo. Lets not forget all the high-fidelity ear buds too I think its game over for the pro/cinema divisions. I truly hope I am wrong.
The ray of hope that I see is for those automotive licensing agreements, branded lifestyle speakers, TV soundboard, etc to have any value the brands themselves will need to maintain a certain level of relevancy. That could mean more investment back into Infinity so that an Infinity car stereo becomes something that holds value for customers, and keeping the lights on at JBL and Lexicon so that the next Samsung soundbar with JBL speakers and Lexicon Quantum Logic has the brand panache to demand a premium price.
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post #10 of 19 Old 03-14-2017, 07:59 AM
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Quote:
Originally Posted by imagic View Post
The flip side is Samsung is such a beast, and it takes on industrial-scale projects (shipbuilding, gas drilling platforms). So pro audio and AV might slot into its business model in ways we are not thinking of at the moment.

My impression is that Samsung plans to bolster the pro audio lines, that was explicitly referenced in some of the press releases surrounding the original announcement.

Also, last year when I took a trip to visit the company's truly impressive audio research facilities in California—that was already stocked with Harman alumni— the person running at facility said that Samsung's explicit goal was to up its audio game to the point where it is thought of in the same way as Bowers & Wilkins.

Lofty goal, but buying Harman was like engaging warp drive when it comes to achieving it.
Lets hope that comes to fruition - sounds positive.
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post #11 of 19 Old 03-14-2017, 11:46 AM
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Infinity at least at home is dead already. Primus were great.

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post #12 of 19 Old 03-14-2017, 11:55 AM
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Samsung :-)

Interesting. Samsung taking over the world!
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post #13 of 19 Old 03-14-2017, 12:00 PM
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I don't know this could go either way, but I can see this merger hurting Harman. I am sure it is going to come with job cuts and cuts to R&D. Have to wait and see. I mean having a parent company like Samsung with tons of money to invest could take Harman to the stratosphere. Companies like Samsung want to stay profitable and they know how to stay profitable, so look for major cuts. Will be interesting to watch for sure.

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post #14 of 19 Old 03-14-2017, 12:11 PM
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Great, now they can make speakers and amps that explode unexpectedly... sorta like their phones....
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post #15 of 19 Old 03-14-2017, 12:31 PM - Thread Starter
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Great, now they can make speakers and amps that explode unexpectedly... sorta like their phones....
Yeah, that joke is still funny, sure.
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post #16 of 19 Old 03-14-2017, 12:48 PM
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Yeah, that joke is still funny, sure.

I had one of those explody phones.... guess what it did?
So.... a little funny.... at least to me anyway.....
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post #17 of 19 Old 03-14-2017, 01:30 PM
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Or.

Now my speakers are going to rat me out to the government, thanks America!.
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post #18 of 19 Old 03-14-2017, 01:40 PM - Thread Starter
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Or.

Now my speakers are going to rat me out to the government, thanks America!.
Don't forget your microwave too!
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post #19 of 19 Old 03-15-2017, 03:33 PM
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My wife worked for Harman in their headquarters in Stamford, Ct. She made a bundle on that sale through the stock she held.

Now if she'd only give me some.
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