ARCHIVED FORUM -- March 2012 to February 2022READ ONLY FORUM
This is the second Archived Forum which was active between 1st March 2012 and 23rd February 2022
an article this morning https://uk.reuters.com/article/us-bang-olufsen-m-a/bang-olufsen-would-listen-if-approached-by-buyer-chairman-idUKKCN1VD0MB
Beo Century ,Beoplay V1, Beocenter 6, Ex-Beolit 12, Beotime , A8. Beolit 15 , Form 2i , Beolab 2000, Beoplay A3.Beosound 1
Could we all club together and buy the company?
9 LEE: Could we all club together and buy the company?
Probably
predictable, and predicted here before.
Not all buyers are created equal - Apple buying them would be very different from some opportunistic investor with limited track record in the space.
Not clear why any of the big tech companies would actually even buy B&O? What would they be getting exactly that they need?
Sandyb: Not clear why any of the big tech companies would actually even buy B&O? What would they be getting exactly that they need?
Possibly a few trademarked inventions/ideas, but are there many of these left?
I've been involved with a few big company buyouts in the past and they nearly always end in tears. The company buying tends to want a small part of the company and often splits it up or sells off various parts.
It's very rare for a company to buy another company 100% and simply keep it 'as is'.
moxxey: Sandyb: Not clear why any of the big tech companies would actually even buy B&O? What would they be getting exactly that they need? Possibly a few trademarked inventions/ideas, but are there many of these left? I've been involved with a few big company buyouts in the past and they nearly always end in tears. The company buying tends to want a small part of the company and often splits it up or sells off various parts. It's very rare for a company to buy another company 100% and simply keep it 'as is'.
About the only time I can recall that in audio was with McIntosh, which thankfully is still acting like McIntosh. B&O has forgotten how to be B&O, and I doubt any company buying them, especially a Chinese holding company, knows how to be B&O either sadly.
Just an off the cuff observation, I recently purchased a new car that has a B&O branded/Harman audio system in it. It sounds identical to all the other three Harman car systems in cars I drove, from Harman branded, to Revel branded. Harman has homogenized all of the brands to sound the same, the only thing different is the dashboard brand name logo.
Jeff
I'm afraid I'm recovering from the BeoVirus.
Hasn't that already happened in part!
Ban boring signatures!
B&O would make a good 'Halo Brand' for someone like LG.
What's left of the brand name, plus some very good technical people. That's all B&O has to offer from a buyers perspective, unless you're looking to build a huge art- hotel in the middle of nowhere, complete with sheep...
Lee
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Correctamundo ,I totally agree with you here ,shame B&O been rudderless for a while and Bang olufsen are as much we love their (some) products are stubborn !
Duels:This article doesn’t really tell us anything new. As a public company B&O is obliged to listen to offers/enquiries if they appear genuine. That’s all part of being a listed company. The directors have to act in the interests of shareholders.
I read 2 quotes that caused the PR person to deny the company was put up for sale. That IS new and probably not good form.
Interesting reading in another article!
Sparkle Roll
Investors may now be asking themselves why B&O’s board was so determined to fend off a 2016 takeover attempt. Back then, Sparkle Roll -- a company controlled by Chinese billionaire Qi Jianhong -- indicated it was interested in buying B&O as it built up a major stake. But Andersen rebuffed its overtures, referring to the uncertainty surrounding a potential bid. That was three years ago, when a B&O share cost considerably more than now.
Andersen has more time to focus on B&O these days, after being ousted from the head of the board of Danske Bank late last year in connection with a $230 billion money laundering scandal. His departure was forced through by A.P. Moller, the biggest shareholder in Danske. Andersen has also agreed to step down as chairman of food-ingredient maker Chr. Hansen.
ed7:Investors may now be asking themselves why B&O’s board was so determined to fend off a 2016 takeover attempt. Back then, Sparkle Roll -- a company controlled by Chinese billionaire Qi Jianhong -- indicated it was interested in buying B&O as it built up a major stake. But Andersen rebuffed its overtures, referring to the uncertainty surrounding a potential bid. That was three years ago, when a B&O share cost considerably more than now.
I seem to remember it was the other way around, I.e. Sparkle couldn't or wouldn't provide the credentials and lost interest in the process, The worst part is actually the longer this goes on the more the brand value gets diluted.
IMHO the only remaining value is in the Play segment, unfortunately extremely volatile and the Beolab range where one of the two most expensive speakers have gained a somewhat dubious reliability reputation. In the lower end of the speaker range, the driver is based on a 30 year old iconic design, and as much as love and admire that speaker, it needs some siblings to play with!
It's going to be a tough sell, especially with the overhead needed for the "own store" concept to operate,- perhaps the true achilles heel!
9 LEE:B&O would make a good 'Halo Brand' for someone like LG. What's left of the brand name, plus some very good technical people. That's all B&O has to offer from a buyers perspective, unless you're looking to build a huge art- hotel in the middle of nowhere, complete with sheep... Lee
KMA
B&O product history since 1991: Ridiculously long to list in a signature.
Jeff: Jeff I'm afraid I'm recovering from the BeoVirus.
Apple should buy it and sell B&O products as a separate brand in Apple stores
KMA: Jeff: Jeff I'm afraid I'm recovering from the BeoVirus. I started to recover from the virus, too, a couple of years ago. That said, I'm keenly watching what will be revealed at IFA.
I started to recover from the virus, too, a couple of years ago. That said, I'm keenly watching what will be revealed at IFA.
I keep hoping that they will get their act together again, but keep getting disappointed. Hoping for something worthy and interesting at IFA as well, time will tell.
thorne: Apple should buy it and sell B&O products as a separate brand in Apple stores
Why should Apple buy company like B&O with low quality and over priced products?
For example look at the ratings of the B&O App at the Apple App Store. When a company in the high price segment is not able to develop high quality products, it is not surpricing that the development of sales / revenue as well as the share price looks like the one of B&O in the last months.
The time for B&O is over …
The price for a B&O oled television is much too high!
They don't follow the marketprices.
They should better stop with their LG oled television with their own sound.
Looks there is doubts whether the current management can turn the company around. My 2 cents is that B&O needs to focus on their retail strategy and streamline their product line. At least in the US it is almost impossible to find a store. Also, they should have fewer products with the Beolab 18 as their top end product. The Beoplay and OEM business lines are profitable or close to IMHO.
As for a buyer, most likely suited is a PÉ company that will focus on Beoplay and more emphasis on mass market availability. B&W and others have all been acquired as well...
B&O in my life 😊:
Jaffrey2230:most likely suited is a PÉ company
The PE (Privat Equity) solution is probably the only solution, that could manage a hard turn around. By getting ride of all the low performer, overstrained and dreamer of the good old times at the B&O headquarter in Struer.
Private Equity will not be interested in B&O.
PE funds generally like companies which they can leverage up with debt, and with a clear exit strategy to relist the equity 5 years down the road.
Those get companies often have simple operational inefficiencies, not large R&D / investment requirements, and have financial metrics that can support high debt loads for 5 years. B&O does not fit the bill.
Trust me, PE will not be interested, not even from an undervalued IP point of view.
B&O are stuck with a trade buyer (Apple, Google, another audio company), or an opportunistic investor ( a la Sparkleroll) who dont necessarily bring anything to the table. Or continuing to be independent.
To me a trade buyer would be best, Apple ideally, or maybe even Sonos, though their market cap is very similar to B&O, so that seems unlikely. Anyone but Google or Amazon.
Sandyb:To me a trade buyer would be best, Apple ideally, or maybe even Sonos, though their market cap is very similar to B&O, so that seems unlikely. Anyone but Google or Amazon.
There is no way Apple would be interested!
Regardless of what you think of Apple their hardware is in a completely different league than B&O, and they can leverage the power of true mass production!
And they own a good deal of the ecosystem!
Agreed, I said Apple would be best, not likely at all though.
Apple’s been public about their acquisition strategy for quite some time. They acquire small-to-medium firms with talented people who can contribute to Apple’s product goals; and/or have intellectual property that can contribute to Apple’s product goals. See: Intel’s modem division. Beats was acquired for the streaming and curation technologies, and for Jimmy Iovine.
They don’t acquire things they can make or develop by themselves (pretty much any product). And they won’t purchase because of brand equity. They seem to be doing well enough on that count by themselves. 🙂
The exercise is to see how well a B&O acquisition would fit with those priorities.
One word... Apple.
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Agreed, which is why its very unlikely at best.
With Ive now operating from the outside, they may feel B&O offers them some design chops perhaps.
Anyway, I give this little further thought, as it's altogether a 0-5% chance max.
HH1971: Jaffrey2230:most likely suited is a PÉ company The PE (Privat Equity) solution is probably the only solution, that could manage a hard turn around. By getting ride of all the low performer, overstrained and dreamer of the good old times at the B&O headquarter in Struer.
Is there anything realistically to get rid of? You know B&O already cleared out it's vision department and is selling off its HQ!
moxxey: HH1971: Jaffrey2230:most likely suited is a PÉ company The PE (Privat Equity) solution is probably the only solution, that could manage a hard turn around. By getting ride of all the low performer, overstrained and dreamer of the good old times at the B&O headquarter in Struer. Is there anything realistically to get rid of? You know B&O already cleared out it's vision department and is selling off its HQ!
You're correct of course - all they're really left with is a group of people, some who could walk into a new job anywhere tomorrow, (along with others that have helped navigate the ship to where it is today) and a name that used to mean something (to some)!
Puncher: You're correct of course - all they're really left with is a group of people, some who could walk into a new job anywhere tomorrow, (along with others that have helped navigate the ship to where it is today) and a name that used to mean something (to some)!
And the 'good old times' are arguably consumer-driven not always manufacturer-driven. It needs enough people to want to buy the products. Sure you can dictate this through clever marketing and price, but ultimately dealers need people to walk through those doors. You don't necessary develop the old days from a drawing board - the Eclipse is well-designed. Just friggin expensive. And designed for people who are happy to spend £10K on a 55" TV. There aren't many of those left.