Samsung dominates in a little-noticed segment

The unique Nautilus speaker line from Bowers & Wilkins, now owned by Samsung. Photo: B&W .

Samsung subsidiary Harman has agreed to buy Masimo's audio business for $350 million . The deal, expected to close later this year, has the potential to significantly boost Samsung's ambitions in automotive audio and connected technology.

Masimo is a US-based company that owns many high-end audio brands, notably Bowers & Wilkins (B&W). This is the first large-scale acquisition by the Korean company in the past 9 years.

Under the deal, Masimo’s renowned audio brands, including B&W, Denon, Marantz, Polk Audio and Definitive Technology, will join Harman’s already extensive audiovisual product portfolio. Masimo acquired the aforementioned brands through its $1 billion acquisition of Sound United in 2022.

Harman, which has been owned by Samsung Electronics since 2016, already owns a number of popular AV brands including JBL, Harman Kardon, AKG, Infinity and Mark Levinson. The company led the global portable audio market last year with a market share of around 60% and has been expanding its presence in larger audio segments such as headphones and wireless earbuds.

Samsung shareholders look at Harman auto components on display at the company's annual shareholders meeting on March 19. Photo: Joint Press Corps.

Samsung said the acquisition would help Harman further consolidate its global leadership in the consumer audio market, which the company forecasts will grow from $60.8 billion in 2025 to $70 billion in 2029.

“Building on a shared heritage of innovation and excellence in audio technology, the combination of these brands, along with the talented teams from both companies, will deliver complementary audio products, strengthen our value proposition and provide more choice for consumers,” said Dave Rogers, president of Harman’s Lifestyle division.

The deal marks Samsung's biggest acquisition since its $8 billion purchase of Harman in 2016.

Samsung has long stated its plans to use mergers and acquisitions (M&A) as a growth driver, but the company has been tight-lipped over the years, only reiterating in recent earnings calls that it is monitoring the market.

Samsung's chief financial officer Park Soon-cheol said during a first-quarter earnings call on April 30 that the company is "actively reviewing M&A opportunities to enhance shareholder value and drive future growth."

The Harman acquisition has proven to be a successful move for Samsung. The company’s operating profit remained at $40 million in 2017 and has grown exponentially to $5.5 billion in 2024. Samsung has been integrating AKG and Harman Kardon branded audio technologies into its smartphones, laptops, and other consumer electronics.

Samsung also plans to apply the new brands' advanced audio technologies and expertise to smartphones, wireless headphones, over-ear headphones, TVs and soundbars.

Industry attention is focused on whether Samsung will pursue further M&A in future-oriented businesses such as semiconductors and robotics. At its annual shareholder meeting in March, the company said it was looking for “M&A deals” in the semiconductor sector.

Source: https://znews.vn/samsung-thau-tom-loat-thuong-hieu-am-thanh-dinh-dam-post1551867.html