Samsung, after acquiring Harman in 2017, is now expanding its audio portfolio by allowing Harman to acquire Masimo’s Sound United for $350 million, pending regulatory approval. Sound United has notably acquired brands like Denon and Bowers & Wilkins. This deal aims to bolster Harman’s lifestyle division and solidify its position as a leader in global consumer audio, projected to grow from $60.8 billion to $70 billion by 2029. The acquisition raises questions about branding for products like Galaxy Buds, which previously featured “Sound by AKG.” Additionally, Masimo is in a patent dispute with Apple over health tech.
In 2017, Samsung acquired Harman, gaining control over renowned audio brands like Harman Kardon, AKG, Bang & Olufsen, JBL, and others. These brands specialize in headphones, home audio systems, and car audio products, which align with Samsung’s interests. Now, Samsung is broadening its reach as its Harman subsidiary prepares to acquire Masimo’s Sound United.
Recently, Sound United has purchased brands such as Denon, Bowers & Wilkins, Boston Acoustics, and more. Notably, Boston Acoustics supplies OEM sound systems for numerous popular car models.
Previous Galaxy Buds featured “Sound by AKG” branding, which was removed in the Galaxy Buds3 series. Will one of the new brands take their place? Only time will tell.
This acquisition is pending regulatory approval, as is customary, but it is anticipated to finalize by year-end. Samsung has entered into a $350 million agreement for the acquisition.
The deal aims to enhance Harman’s lifestyle business division and solidify its leading position globally in the consumer audio sector. Samsung’s press release indicates that the global consumer audio market is projected to increase from $60.8 billion this year to $70 billion by 2029.
P.S. If the name Masimo rings a bell but seems elusive, it’s the company currently embroiled in a patent dispute with Apple regarding health tracking technology on the Apple Watch.
Source 1 (in Korean) | Source 2