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After Year-Long Search, B&O Finds a Buyer…But Only One

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Investors Who Bid Up Stock on News of a Buyer, May Be Sorry

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Bang & Olufsen A/S, the well-known Danish premium technology brand that balances high performance with high design, has spent a year searching for a prospective buyer. The good news is that they were successful. The bad news is that they were only a little successful…they found exactly one potentially interested party. And as any businessperson can tell you, that there is only one bidder doesn’t bode well for sparking a bidding war to drive up the deal to ever more profitable levels.

See the problematic situation B&O has gotten themselves into… [Read more…] about After Year-Long Search, B&O Finds a Buyer…But Only One

Streaming Revenues Overtake Music Downloads for the First Time Ever

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Overall Recording Industry Sales Grow for First Time Since 2011

RIAA logoThe Recording Industry Association of America (RIAA) reported overall industry sales data for  2015 this week, revealing that for the first time in history streaming music was the single largest component of industry sales. Revenues from streaming sources accounted for 34.3% of total revenues, beating out music downloads from services like iTunes and others which accounted for 34% of total revenues.

Overall sales increased 0.9% to $7 billion, the first overall industry growth since 2011.

See more on the growth of streaming in music industry sales… [Read more…] about Streaming Revenues Overtake Music Downloads for the First Time Ever

LCD Panel Prices in a Free Fall – Down 40% This Year

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Photo of 4K Ultra HDTVLiquid crystal display panel prices are dropping dramatically, hitting new low levels never before seen, as ramped-up production by Chinese manufacturers collides with depressed consumer demand for televisions and personal computers.The situation does not seem to be righting itself, even considering the fact that an earthquake recently damaged LCD panel production in Taiwan.

See more on the impact of a glut of LCD panels… [Read more…] about LCD Panel Prices in a Free Fall – Down 40% This Year

Moody’s Downgrades Gibson Brands Credit to Junk

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Gibson Brands CEO Responds to Moody’s Downgrade

Photo of Gibson busThe music industry is positively buzzing about the announcement late last week by Moody’s Investors Service that, for the second time in three months, it has downgraded the credit rating of Nashville, Tennessee-based Gibson Brands. Gibson (formerly Gibson Guitars) is a tightly held private company that launched an aggressive diversification strategy a few years ago, focusing on acquiring several consumer electronics brands such as Onkyo Corp. and Teac, Corp. and recently Philips.

Now Moody’s suggests the debt used to acquire these brands is dragging the company down… [Read more…] about Moody’s Downgrades Gibson Brands Credit to Junk

After Big Setback, Sharp-Foxconn Deal Expected Soon

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Newly Discovered Liabilities Nearly Derail Deal

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Terry Gou

In what most Japanese media are calling a due diligence blunder, a potential deal for Hon Hai Precision Industry, better known as Foxconn, to buy Sharp Corp. was nearly scuttled when over $3 billion in potential additional liabilities suddenly came to light. The development caused Foxconn to pull back and, ultimately, launch an even deeper and more detailed analysis of the opportunity.

With talks back on track, a deal is now expected by March 31st… [Read more…] about After Big Setback, Sharp-Foxconn Deal Expected Soon

Nortek Fiscal 2015 Q4 & Full Year Results are Mixed; AVC is Still Sliding

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Nortek LogoNortek, Inc., a diversified manufacturer that through its Core Brands division markets several brands in the custom integration channel, released this week its fiscal 2015 fourth quarter and full year results. Overall, the results were mixed, as the company continues to struggle through a huge consolidation and experience shifts in its sales mix.

But one thing that remains clear is that their AVC segment, the segment that contains the Core Brands businesses, is continuing to struggle with a dramatic sales decline (27.1% decline in the quarter – 20.5% sales decline for the year) and increased losses ($20.8 million loss for the year as compared to a $19.2 million loss for 2014, ).

See more on the continuing struggles at Nortek… [Read more…] about Nortek Fiscal 2015 Q4 & Full Year Results are Mixed; AVC is Still Sliding

Only Days Away From Official Launch, Toshiba Scraps Wearvue Smart Glasses

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Toshiba Wearvue

Toshiba Corp. has pulled the plug on a highly-touted smart glasses project – a product similar in concept to the recently cancelled consumer version of Google Glass. What’s most interesting about this decision by Toshiba is that they made it just days before the originally scheduled – and loudly promoted – launch date.

See more on this puzzling last-minute cancellation of an almost-launched product… [Read more…] about Only Days Away From Official Launch, Toshiba Scraps Wearvue Smart Glasses

Ingram Micro Sold to Chinese Shipping Company for $6 Billion

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BREAKING NEWS

Ingram Micro logoThe Associated Press is reporting that Ingram Micro, Inc., best known as parent company to custom integration distributor AVAD, has been sold to Tianjin Tianhai, a Chinese Shipping company in a deal worth roughly $6 billion. The all-cash deal works out to approximately $38.90 per Ingram Micro share, well over its previous close of $29.42.

See more on this surprising announcement… [Read more…] about Ingram Micro Sold to Chinese Shipping Company for $6 Billion

Sony’s Profits Prove Turnaround is Real

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Photo showing Sony logoIn new data coming out of Japan, Sony has reported their 9-month results for the current fiscal year revealing solid profitability that makes it clear that their turnaround efforts are producing serious and durable results. Of a total of 439 companies reporting YTD (3-quarter) results, a report in the Nikkei had “Sony stealing the spotlight” with a “sharp turnaround” in its bottom line.

See more details on where Sony has seen results… [Read more…] about Sony’s Profits Prove Turnaround is Real

Apple Bruised by Worst iPhone Sales Growth Ever

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AppleApple, Inc. is starting to look brown, bruised, and past its prime in wake of the surprising quarterly results that showed growth in sales of their bellwether iPhone product to be the slowest since the company launched the product category in 2007. Not only that, but the company forecast an overall sales decline for the first quarter of 2016 – their first sales decline since 2003. Reaction from Wall Street was swift with the price of Apple stock down more than 6% in mid-afternoon trading.

What’s going on at Apple?… [Read more…] about Apple Bruised by Worst iPhone Sales Growth Ever