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Harman buying Bang & Olufsen Automotive audio business

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This post has 23 Replies | 1 Follower

mr_anders_son
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mr_anders_son Posted: Tue, Mar 31 2015 11:47 AM
http://finance.yahoo.com/news/harman-buying-bang-olufsen-automotive-103753069.html?.tsrc=applewf

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beolion
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beolion replied on Tue, Mar 31 2015 11:50 AM
Its a very good price. Might be ok if the automotive does not contribute to the main business.
Paul W
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Paul W replied on Tue, Mar 31 2015 1:29 PM

That's bizarre as I thought that was the side of the B&O business that was doing well??? I'm really happy that it's gone to a excellent home. Harmon really know what they are doing and their portfolio is exceptional.

Duels
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Duels replied on Tue, Mar 31 2015 1:46 PM

A much needed cash injection, ongoing royalty income and concentration going forwards on core AV business.

 

 

OR.....

 

 

Tidying up/simplifying the business ahead of a sale.

 

 

 

bayerische
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Why sell off the part that makes money?!

Too long to list.... 

Raeuber
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Raeuber replied on Tue, Mar 31 2015 2:35 PM
Is this good news or the beginning of the end of B&O?
Paul W
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Paul W replied on Tue, Mar 31 2015 3:22 PM

This is what I was thinking Bayerische. Maybe they are going to do a Steve Jobs, like when he returned to Apple and axed everything and started from scratch all over again. A SONOS style smartphone comparable system is so needed. B&O sticking to Deezer is crazy - what about the new relaunched Tidal, the new Apple BEATS service about to launch, Google etc etc so many different kinds of customer platforms for each customer on the smartphone platform.

Sal
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Sal replied on Tue, Mar 31 2015 3:26 PM

In one of the articles I read, it said that B&O was also looking at options for its's ICEpower amplifier unit, if they were "re-shifting focus to consumer electronics" why on earth would they look at options for ICEpower? Isn't that the bread and butter for speakers, and don't they have that licensed out to other companies as well? I just don't have the business acumen to understand.

bayerische
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Raeuber:
Is this good news or the beginning of the end of B&O?

I wish it was good news, but perhaps this part of the business (growing & profitable) is the only part of interest... 

 

Too long to list.... 

Hiort
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Hiort replied on Tue, Mar 31 2015 5:24 PM

A lot of cash.

Probably a good continued inflow of royalties.

Hopefully B&O now can focus really hard on doing awesome things in the AV business.

 

 

 

 

 

 

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Millemissen
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bayerische:

Raeuber:
Is this good news or the beginning of the end of B&O?

I wish it was good news, but perhaps this part of the business (growing & profitable) is the only part of interest... 

Might even be a good strategy - the automotive business is getting a very tough one.

With Harman as a competetor for the future it would be very hard for B&o to keep the costumers, that they have by now.

Companies like Harman are big - they are able to and are willing to invest massive in this segment.

Better sell, what you can, before you are run over by the competitors.

Don't always look at, what B&O does, from a negative angle!

 

Personally I would never be able to buy any car with a B&O system built in.

Maybe now I have a chance for a B&O Play branded Harman car audio system 😄

 

MM

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Paul W
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Paul W replied on Tue, Mar 31 2015 6:49 PM

Hey MM my Audi A3 has a BANG&OLUFSEN system in it and the A3 isn't too expensive :) BUT My MINI Coopers had the Harman Kardon systems and they were a lot nicer sounding. The A3 sound is a bit flat :(

Millemissen
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Now - I am not really into cars.

The A3 would be too small for me - as I often have my two (now grown up) sons driving with me (as well as my wife).

And the Mini Cooper - the same goes for that.

MM

There is a tv - and there is a BV

Paul W
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Paul W replied on Wed, Apr 1 2015 12:54 AM

Same here MM - I'm into motorbikes more. I could see you enjoying a motorbike :)

StUrrock
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Paul W:

Same here MM - I'm into motorbikes more. I could see you enjoying a motorbike :)

MM would love a Harley Davidson ONLY if it came with a cat basket attached to the handlebars.
Hardwriter
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Could be a pretty smart way to get the B&O Play brand better known in the mainstream consumer market. 

Millemissen
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StUrrock:
Paul W:

Same here MM - I'm into motorbikes more. I could see you enjoying a motorbike :)

MM would love a Harley Davidson ONLY if it came with a cat basket attached to the handlebars.

Sure - if you could only find a basket, that is big enough 🙀

MM

There is a tv - and there is a BV

Aussie Michael
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Good news.  Hope B&O do well with this cash injection.  I would also sell off the profit segment to allow for more cash and an opportunity to realign. 

 

vikinger
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From Wall Street Journal:

Harman to Buy Bang & Olufsen’s Car-Stereo Business

By
Mike Ramsey
March 31, 2015 9:20 a.m. ET

Harman International Inc., a maker of in-car multimedia systems, is buying the auto-related operation of Bang & Olufsen, giving the Stamford, Conn., company a dominant position in the car sound-system business.

The €145 million ($156 million) purchase of Bang & Olufsen’s automotive business includes licenses for the use of the brands connected to the Danish company, according to Harman. The purchase doesn’t include Bang & Olufsen’s consumer-electronics business.

The brand is a luxury offering found primarily on Audi, Aston Martin, BMW and Mercedes-Benz vehicles. The combined company would include Bang & Olufsen, Bowers & Wilkins, Harman Kardon, Infinity, JBL, Lexicon, Mark Levinson and Revel audio brands.

“From the marketing, scale and technologies Harman will bring to the business, we will strengthen and grow the Bang & Olufsen and B&O PLAY automotive audio brands and, importantly, further improve profitability, which is now in line with our existing car audio business,” said Chief Executive Dinesh Paliwal in a statement.

This purchase follows up a $950 million investment into two different software firms earlier this year by Harman, which is building up its position to provide programming and hardware for the screens inside of automobiles.

The weaker euro made the purchase more affordable for Harman than it might have been a year ago, when the exchange rate pegged the euro at close to $1.40 instead of the recent $1.08.

expoman
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expoman replied on Wed, Apr 1 2015 2:40 PM

What is the B&O Play automotive audio brand?  A new segment or just a generalization. 

Paul W
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Paul W replied on Wed, Apr 1 2015 2:56 PM

Could be a brand new concept for the slightly more mainstream brand of car family - maybe VW & Skoda will get them as apposed to BANG&OLUFSEN in Audi etc and maybe the MINI range / Audi A1 may have the brand. There's a real potential in that if these people are buying the PLAY range at home for their smartphone living!

Evan
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Evan replied on Thu, Apr 2 2015 7:16 PM

expoman:
What is the B&O Play automotive audio brand?

This is what I'm afraid of.

I'm almost certain this is what Harman will use to mask an ultra-cheap system to shove in the next abysmal Toyota Corolla or Rav4. Harman does only harm to the brands that they own... All of the brands they own were once rock solid, honest, high quality products that people aspired to owning - just like Bang & Olufsen! Now they are cheap, flimsy and sold in places like Wal-Mart.

The day I see a badge in a car (or anywhere!) the reads "BANG & OLUFSEN by Harman" is the day I come unglued.

I'm stunned this thread dropped off to the second page so quickly.

Yesterday I was hopeful that this was an April fools joke but became depressed after realizing it was true. Heartbroken, I'm simply heartbroken.

I'm already looking forward to the day B&O buys back its automotive business.

 

Beo4 'til I die!

Mark
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Mark replied on Thu, Apr 2 2015 9:34 PM
I can understand why they may sell this arm of the business, it is common sometimes to sell of profitable limbs to focus on the main body but when we are seeing more and more music integration from home to portable to mobile devices then this seems in my mind strange. Maybe lack of investment money is the key to there thought process.

we tend to forget there is more to design than designing.

Paul W
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Paul W replied on Thu, Apr 2 2015 10:30 PM

Hey Evan, I really agree buddy. The Harman Kardon's that i've had the pleasure using ARE FANTASTIC with beautiful build quality and in the MINI, zero distortion on MAX volume. JBL is still highly regarded in broadcasting with the little £150 Control 1's used in A LOT of studios - they are tough little beasts PLUS they've made a great job of the home cinema AND SONOS equiv systems. I rate them VERY HIGHLY!!! I think the ones that i've tried are exceptional. B&O are in good hands!

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