Strategy in TECH...
Marantz and Denon both announced this week that they are offering a firmware update that adds Auro-3D, a popular surround sound system in Europe, to two top models in each brand. This upgrade will make these models the most comprehensive home theater center available today – featuring Auro-3D, Dolby Atmos, and DTS:X – the most advanced surround sound technologies available.
The Boards of both Hon Hai Precision Industry Co. (better known as Foxconn) and Sharp Corp. have approved the acquisition of 66% of the outstanding shares of Sharp by the Taiwanese OEM manufacturer of largely Apple, Inc. products. This day came largely as a result of some savvy negotiations and tactics from Foxconn’s CEO Terry Gou, who overcame tremendous odds to score this win.
Just two weeks after we told you about Moody’s Investors Service downgrading Gibson Brands credit to junk status, the company has put two of their properties up for sale in an apparent effort to raise some much-needed cash. According to local reports, both properties contain warehouses and are located in redevelopment areas in downtown Nashville.
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.
The 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.
In revisting the long-running saga of Sonos, Inc. vs. D&M Holdings, Inc. et. al., we find that after a series of skirmishes over scheduling issues – such as deadlines for filings and responses, and new claims and counterclaims filed – there appears to be a concerted effort by both parties to ratchet up the pressure. So far, it appears to our non-legally educated eyes that Sonos has a slight edge in this game, winning the scheduling skirmish and winning the right to expand the number of patents at issue.
Liquid 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.
Atlantic Technology announced this week that it is launching a new line of home theater and music speakers, including a unique product they call a “front-stage” speaker which resembles a traditional soundbar, but is passive. All models are based on the same drivers, so that whether used separately or together, the sound is fully timber-matched for consistent imaging and sound quality.
The 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.
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.
