Samsung’s latest takeover could change everything.
Masimo’s billion-dollar gamble on consumer audio didn’t pay off, and now HARMAN, a subsidiary of Samsung, is stepping in.
For $350 million, the tech giant just added Bowers & Wilkins, Denon, Marantz, and more to its audio empire. This officially cements Samsung as a dominant force in nearly every audio category.
But will Samsung keep the magic alive, or will these beloved brands lose what made them special? Here’s what you need to know.
Samsung’s Expanding Audio Empire
Samsung’s recent acquisition of Masimo’s consumer audio division adds several prestigious brands to its already extensive lineup.
The deal includes the following eight brands:
- Bowers & Wilkins
- Denon
- Marantz
- Polk Audio
- Boston Acoustics
- Definitive Technology
- HEOS
- Classe Audio
These brands will join HARMAN’s existing lineup:
- AKG
- AMX
- Arcam
- Bang & Olufsen Automotive
- Becker
- BSS Audio
- Crown
- dbx
- DigiTech
- Harman Kardon
- Infinity
- JBL
- Lexicon
- Mark Levinson
- Martin
- Revel
- Soundcraft
- Studer
“This acquisition represents a strategic step forward in the expansion of HARMAN’s core audio business and footprint across key product categories such as Home Audio, Headphones, Hi-fi components, and Car Audio,” said Dave Rogers, President of HARMAN’s Lifestyle division.
“It complements our existing strengths and opens new avenues for growth.”
This deal creates unprecedented market coverage across multiple audio segments. After all, Samsung will now control brands specializing in everything from mass-market speakers and headphones to ultra-premium home theater equipment and audiophile components.
The Financial Story Behind the Sale
Masimp initially acquired the division for $1.532 billion in 2022, but it’s now selling it for just $350 million. That’s less than a quarter of its original investment!
It’s not exactly surprising, though.
Industry analysts have suggested that Sound United’s original purchase by Masimo was an “emotional buy” by its founder. However, that decision hasn’t paid off financially.
Financial reports reveal Masimo’s struggles with its audio venture. By Q3 2024, consumer audio revenue had fallen to $161.4 million, down from $171.5 million the previous year.
The division was reportedly $31.3 million in the red, with $12.9 million of that loss occurring in Q3 alone.
With this, Masimo can now to concentrate its resources on its core medical technology business, effectively closing a brief but costly chapter in the consumer audio sector.
What Audiophiles Should Watch For
Samsung’s takeover of Masimo’s consumer audio brands has left some audiophiles on edge. The big question: Will these iconic brands keep delivering the sound they’re known for, or will changes in ownership change everything?
Here’s what to watch for:
- Manufacturing Quality: Bowers & Wilkins, Denon, and Marantz have built their reputations on high-quality craftsmanship. If Samsung shifts production to different facilities or changes sourcing methods, even subtle tweaks could impact what makes these brands special.
- Sound Tuning and Engineering: Each brand has its own unique sound. For example, Marantz’s warm, analog feel or Bowers & Wilkins’ crystal-clear precision. Will Samsung keep these tuning teams intact, or will they standardize the sound across all brands? That’s what fans will be listening for.
- Product Focus: Samsung’s a mass-market giant. If they decide to push these brands toward more mainstream products, could that mean fewer high-end, audiophile-focused releases? It’s a real concern for those who love these brands for their premium sound.
- Retail Strategy: McIntosh faced some backlash when their new owners (Bose) changed distribution channels, pulling products from select retailers. If Samsung rethinks how and where these brands are sold, that could signal bigger changes to come.
For now, it’s a waiting game. Samsung hasn’t laid out specific plans, but how they handle these iconic brands will set the tone for the next chapter in its audio empire.