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B&O would listen to potential buyer of company

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Simonbeo
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Simonbeo posted on Fri, Aug 23 2019 8:46 AM

an article this morning https://uk.reuters.com/article/us-bang-olufsen-m-a/bang-olufsen-would-listen-if-approached-by-buyer-chairman-idUKKCN1VD0MB

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KMA
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KMA replied on Sat, Aug 24 2019 12:47 PM
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.

KMA

B&O product history since 1991: Ridiculously long to list in a signature.

thorne
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thorne replied on Sat, Aug 24 2019 1:24 PM

Apple should buy it and sell B&O products as a separate brand in Apple stores

Jeff
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Jeff replied on Sat, Aug 24 2019 4:45 PM

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 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.

Jeff

I'm afraid I'm recovering from the BeoVirus. Sad

HH1971
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HH1971 replied on Sat, Aug 24 2019 5:06 PM

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 …

Schuifschoen
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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. 

 

 

 

Mikipidia
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The harmony isn’t. The lg panels will follow market prices and the speaker bit is a b&o speaker and movement and avr basically. So it would be foolish to stop now

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Pushkin
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Pushkin replied on Sat, Aug 24 2019 11:46 PM
And another article (link below) - the reader comments on the article are interesting - not much love for the brand anymore! https://www.thisismoney.co.uk/money/markets/article-7388863/Luxury-TV-speaker-maker-Bang-Olufsen-looking-buyers-string-profit-warnings.html#comments
Jaffrey2230
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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...

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HH1971
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HH1971 replied on Sun, Aug 25 2019 10:02 AM

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.

Sandyb
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Sandyb replied on Sun, Aug 25 2019 11:03 AM

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.

 

BEOVOX141
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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!

Sandyb
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Sandyb replied on Sun, Aug 25 2019 2:54 PM

Agreed, I said Apple would be best, not likely at all though.

 

BeoFrederic
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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.

Hungedu
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One word... Apple.

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Sandyb
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Sandyb replied on Mon, Aug 26 2019 12:23 AM

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.

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