Harman International, a wholly owned subsidiary of Samsung, is making strategic moves to dominate the global consumer audio market with its latest acquisition. The company is purchasing the audio business of health technology firm Masimo for $350 million in cash, a deal expected to close by the end of 2025 pending regulatory approvals. This acquisition marks another significant step in Samsung’s audio expansion strategy, following its $8 billion purchase of Harman International in 2017.
Harman’s impressive portfolio already includes iconic brands like JBL, Harman Kardon, AKG, Mark Levinson, Arcam, and Revel. The addition of Masimo’s audio brands under Sound United—Bowers & Wilkins, Denon, Marantz, and Polk Audio—will further solidify Harman’s position as an industry leader. These brands are renowned for their premium sound quality, innovative engineering, and loyal customer bases.
The acquisition is expected to bring together two powerhouses in audio technology, combining Harman’s expertise in portable and wireless audio with Sound United’s legacy in high-end home audio systems. Dave Rogers, President of Harman’s Lifestyle division, emphasized the shared commitment to innovation and excellence, stating that the merger will enhance product offerings and provide consumers with more choices.
Samsung’s press release highlighted the historical significance of the brands involved, noting Bowers & Wilkins’ legendary Nautilus loudspeaker and Zeppelin wireless speaker, as well as Denon’s pioneering role in CD player technology. With Harman already holding a 60% market share in portable audio devices, this acquisition aims to reinforce its dominance while expanding into new segments.
The deal also signals Samsung’s broader ambitions to integrate premium audio technologies into its ecosystem, including smartphones, TVs, wireless earbuds, and soundbars. This move aligns with the growing consumer demand for high-quality audio experiences across all devices.
### The Strategic Importance of the Masimo Audio Acquisition
This acquisition is more than just a financial transaction—it represents a calculated effort to consolidate Harman’s leadership in the audio industry. Here’s why this deal matters:
1. Market Expansion: By acquiring Sound United’s brands, Harman gains access to high-end home audio markets where Bowers & Wilkins, Denon, and Marantz have strong footholds. This complements Harman’s existing dominance in portable and car audio.
2. Technological Synergy: The merger allows Harman to leverage Masimo’s audio innovations, potentially leading to breakthroughs in sound quality, noise cancellation, and wireless audio performance.
3. Competitive Edge: With rivals like Sony, Bose, and Apple investing heavily in audio, this acquisition ensures Harman remains ahead in the premium audio space.
4. Samsung’s Ecosystem Integration: Samsung can now incorporate top-tier audio engineering into its Galaxy Buds, QLED TVs, and soundbars, enhancing its product differentiation.
### What This Means for Consumers
For audiophiles and casual listeners alike, this acquisition could bring several benefits:
– More Premium Audio Options: Consumers will have access to a wider range of high-fidelity audio products under one corporate umbrella.
– Better Integration: Expect tighter compatibility between Samsung devices and Harman/Sound United audio gear.
– Innovation Boost: Combined R&D efforts may lead to faster advancements in wireless audio, spatial sound, and smart speaker technologies.
### Potential Challenges
While the deal promises growth, there are hurdles:
– Regulatory Scrutiny: Given Harman’s already dominant market position, antitrust regulators may scrutinize the acquisition.
– Brand Identity Risks: Maintaining the distinct identities of legacy brands like Bowers & Wilkins while integrating them into Harman’s portfolio will be crucial.
– Workforce Integration: The transition could lead to restructuring, though Harman has indicated it plans to retain Sound United’s employees.
### Industry Reactions and Future Outlook
Analysts predict this acquisition will reshape the competitive landscape. According to recent market research, the global consumer audio market is projected to reach $422 billion by 2030, driven by demand for wireless and smart audio solutions. Harman’s strengthened portfolio positions it to capitalize on this growth.
Competitors like Sony and Bose may respond with their own strategic moves, whether through partnerships, acquisitions, or accelerated product launches. Meanwhile, consumers stand to benefit from increased innovation and potentially more competitive pricing as brands vie for market share.
### Final Thoughts
Harman’s acquisition of Masimo’s audio business is a bold step toward audio industry supremacy. With Samsung’s backing, Harman is poised to deliver cutting-edge audio experiences across all consumer electronics categories. Whether you’re a music enthusiast, a home theater aficionado, or a tech-savvy shopper, this deal is one to watch.
For the latest updates on Harman’s product lineup and future releases, stay tuned to official announcements. Explore our expert guides on the best audio gear to find the perfect match for your needs.
This article was originally published on Engadget.