Harman buying Bang & Olufsen Automotive audio business

24 replies

bayerische wrote:

Raeuber wrote:
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

Location: Flensborg————Danmark

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 :(

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

Location: Flensborg————Danmark

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

Paul W wrote:

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.

Could be a pretty smart way to get the B&O Play brand better known in the mainstream consumer market. 

StUrrock wrote:
Paul W wrote:

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

Location: Flensborg————Danmark

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. 

 

From Wall Street Journal:

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

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

link 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,  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.

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

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