Sennheiser ‘For Sale’

[Power Pop 23]

The manufacturer of Sennheiser consumer audio has announced they are looking to sell this asset:

One of the world’s best-loved headphone brands is up for sale

But is that worrying? Or a positive sign?

www.whathifi.com

 

[kemmler3D]

Interesting to consider who would really make sense as a purchaser / owner.

I would not like to see them fall into the clutches of Big Tech (e.g. Apple, Google, Amazon, etc.) mainly because I don't think those companies are capable of prioritizing real hi-fi against the sheer scale of the rest of the business.

Samsung / Harman seems like a good way to "efficiently" dilute what makes Sennheiser a unique brand. Like we might just see what amounts to more JBL stuff with a different logo. Nothing against JBL, but not interesting.

Private Equity in general is undesirable for the same reasons as Big Tech, but more so. Expect strip-mining the brand from any firm that doesn't have a strategic interest in a sustained reputation for quality, I would say the same about owners in semi- or unrelated industries.

Would be interesting to see a pro audio shop buy it to diversify further into consumer markets. Are Genelec or Adam big enough to do this?

This might sound weird, but Sony might be an OK home for it? I have the perception that they do not micro-manage their various divisions too much. In terms of headphones in particular they are very strong on the ergonomics and ANC front, at least.

A surprising but not necessarily terrible (from the perspective of product quality) turn of events might see them going to someone like Topping or another Chinese owner.

We'll see...

 

[tineared]

I hope this is not true
Though not an equal circumstance, I can't help but have Oppo flashbacks!

 

[rcstevensonaz]

I would not like to see them fall into the clutches of Big Tech (e.g. Apple, Google, Amazon, etc.) mainly because I don't think those companies are capable of prioritizing real hi-fi against the sheer scale of the rest of the business.

Yea... like when Logitech bought Slim Devices (SqueezeBox)

 

[kemmler3D]

Yea... like when Logitech bought Slim Devices (SqueezeBox)

I wouldn't even call Logitech "big tech" in that sense, but yeah... if a product line is "niche" compared to the larger business and doesn't contribute at least (say) 10-20% of top-line revenue then you have to wonder if they're going to treat it like a real business or a distraction. Look at what Microsoft has done to their gaming division just because the margins aren't high enough - even though they're considered totally fine for the industry.

I might just say I hope whoever buys it is a private company, big, tech, or otherwise. Shareholders seem to have a big allergy to moderate, steady profits that would characterize a mature business and market like this. I do not want someone to buy a cow with plans to turn it into a racehorse.

 

[chelgrian]

Interesting to consider who would really make sense as a purchaser / owner.

I would not like to see them fall into the clutches of Big Tech (e.g. Apple, Google, Amazon, etc.) mainly because I don't think those companies are capable of prioritizing real hi-fi against the sheer scale of the rest of the business.

Samsung / Harman seems like a good way to "efficiently" dilute what makes Sennheiser a unique brand. Like we might just see what amounts to more JBL stuff with a different logo. Nothing against JBL, but not interesting.

Private Equity in general is undesirable for the same reasons as Big Tech, but more so. Expect strip-mining the brand from any firm that doesn't have a strategic interest in a sustained reputation for quality, I would say the same about owners in semi- or unrelated industries.

Would be interesting to see a pro audio shop buy it to diversify further into consumer markets. Are Genelec or Adam big enough to do this?

This might sound weird, but Sony might be an OK home for it? I have the perception that they do not micro-manage their various divisions too much. In terms of headphones in particular they are very strong on the ergonomics and ANC front, at least.

A surprising but not necessarily terrible (from the perspective of product quality) turn of events might see them going to someone like Topping or another Chinese owner.

We'll see...

To be honest Audiotonix should buy them, bin all the pure play consumer products and just continue to develop and sell the cross over products which are also useful in the studio like the HD650 etc.

Or perhaps Sennheiser themselves should buy the division back from Sonova and do the same thing

 

[TK_IIVI]

Feels like a bummer. Just got my HDB 630s like 2-3 months ago. Hopefully they'll get a new good owner.

 

[BlueTunes]

If it was profitable, why was it sold in the 1st place?

 

[TurtlePaul]

If it was profitable, why was it sold in the 1st place?

If someone will pay you more for something you own than the value you put on it, then you sell it.

Maybe with the rise of Chinese brands, bluetooth ANC, there being hundreds of $500+ headphones and IEMs, Senn doesn’t believe consumer headphones will continue to grow and maintain margins.

Maybe Senn needed money and the consumer brand sale would suit that need while keeping the pro brands together.

 

[Power Pop 23]

If it was profitable, why was it sold in the 1st place?

I don't know if the consumer audio division of Sennheiser was profitable or not when it was sold to Sonova.

It could have been profitable and Sennheiser may have decided that concentrating on professional audio would be more profitable.

 

[AA63]

Will be interesting to see. Given that they own Neumann, one would suspect that the higher end Senn headphone and pro microphone tech could be "ported" over there if they keep their patents.

Which I guess would mean that it would just be the (mass) consumer items (soundbars, earbuds, headphones) that would have a new owner. Other than the Harmen group, I could only see one of the bigger asian brands picking those up - I don't think any of the mid-sized ones could afford such a storied/diverse brand - kind of hard to say as they don't release detailed financials.