Bose buys McIntosh and Sonus Faber

Wait! what!
I didn't know Bose had so much money to suck up two giants in Audio.
Bose is a 3B company and with private ownership hence expect healthy profit margins and cash reserves. This should be positive for the Audio industry

From what I know of the industry,
IAG which has almost 1/2 a Billion of estimated revenue which has more of entry and mid level brands including Quad
Then there is Massimo which has B&W/Polk audio other than Denon/Marantz..since it was acquired for a billion might be 200M in revenue
The 4th is of course Harman ( now owned by Samsung) and is actually the behemoth with 8B and brands like Mark levinson, JBL etc with a vast spread

Not aware of other Large consolidated players but the others do add up as well.Considering the luxury audio market is around 10B and expected to have a CAGR of 9% its not a bad idea to consolidate.

I do believe this is great for the Audio industry as it might bring SF/Macintosh to more mainstream audio discussions

The problem could be Spare parts for Older products..Bose may not keep old inventory parts :D
 
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Usually with these type of acquisitions 2 undesirable things happen to current equipment owners:
1. Distribution/Dealership Churn - New mgmt. looks for new D&D's or moves product to their current base. Leaves a current owner hanging in case of support required.
2. And as Arj alluded to above, parts shortage, in case paid service required.
Anyways this seems to be the direction the industry is headed, so one has to be careful when considering a high end Audio purchase.
So far I heard Conrad Johnson and Verity audio shut down, and some others are in difficulty including DartZeel.
Anyways I hope Bose is able to maintain or improve these storied brands.
Cheers,
Sid
 
Bose is a 3B company and with private ownership hence expect healthy profit margins and cash reserves. This should be positive for the Audio industry

From what I know of the industry,
IAG which has almost 1/2 a Billion of estimated revenue which has more of entry and mid level brands including Quad
Then there is Massimo which has B&W/Polk audio other than Denon/Marantz..since it was acquired for a billion might be 200M in revenue
The 4th is of course Harman ( now owned by Samsung) and is actually the behemoth with 8B and brands like Mark levinson, JBL etc with a vast spread

Not aware of other Large consolidated players but the others do add up as well.Considering the luxury audio market is around 10B and expected to have a CAGR of 9% its not a bad idea to consolidate.

I do believe this is great for the Audio industry as it might bring SF/Macintosh to more mainstream audio discussions

The problem could be Spare parts for Older products..Bose may not keep old inventory parts :D
Quick search for numbers
Bose ( including professional ) $3.2B
Harman ( including professional ) $8.8B
Sound United ( Denon, Marantz, B&W, Polk ) $800M
Premium Audio ( Klipsch, Onkyo, Integra, Pioneer ) $250M-$300M
 
I feel this is better then being owned by an Equity firm that just looks at Numbers/Profit.

Time will tell. Mcintosh's pedigree & heritage has always held their Value in the Audio Industry even after multiple owners of the brand.
 
To be fair most so called giants are struggling to stay in business these days. Denon/Marantz/bowers and Wilkins/polk they all are struggling just like pioneer/onkyo and co.
All of the brands are very expensive these days.. they need to work out affordable price ranges ..then of course their market will be up.
 
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