B&W Sold to a Silicon Valley Startup

@ coli

He sold it for an equity stake in the new combined entity, which is still privately-held and VC-funded, not yet publicly traded.  The purchasing firm doesn't have that level of funding for a cash purchase. 

Makes me wonder...given how many VC-backed private equity deals are finally being seen for the ZIRP-driven, QE-liquidity unicorn-fantasies they are, with valuations called into question, I wonder if that's a part of the buyer's mentality.   Add hard, leveragable assets, a predictable cash flow and globally-known brand name with marketable value and overnight the unicorn startup turns into a real company that will likely have no trouble raising additional equity.

This is a very interesting development.   Just thinking into the keyboard...

You've got a younger generation which values convenience, instant access, and ease-of-use...

We've already seen Dynaudio come out with the Xeo line of speakers which combines the DAC and amp in the speaker and accepts the signal wirelessly to simplify the whole system-building process...

You've got a startup which apparently wants to specialize in home automation and which likely will build competitive advantage around software and integration...

And they just acquired the speaker hardware infrastructure to build their home-automation audio systems around.

Think all-in-one integration, think wireless, think walk in your front door and hit a single button on an iPhone app and music fills the house.  

Given what we know about shifting demographics and the economic landscape I think we all know that dramatic change is coming to the audio industry.    B&W selling out to this particular entity may very well be a sea change event. 

For current B&W owners, I wouldn't imagine this would change anything in terms of support, at least in the intermediate term.  Looking forward 7-10 years, who knows what the company will look like, both in terms of product portfolio and financial health.

@ pennsy - not sure if I could disagree with a post more than I do yours.   In fact, I disagree with everything in your post.

While I'm sure many high-end B&W owners would tell you they do enjoy the design qualities of their speakers, I'm quite certain they'll also tell you that they don't buy them just to sit in the corner in the event that gravity reverses and the carpet tries to fly away.  

And while I wouldn't tell anyone not to buy the best amp their heart desires, I believe the speakers are more important to how a system sounds than the amp.  Or, said a different way, let's get together...I'll bring a $1000 Yamaha home theater receiver and a pair of B&W 802 D3 (or a pair of Vandersteen Carbons, or Wilson Sashas, you can pick) and you can bring any $30,000 amp you like and any $1000 pair of speakers you like, and we'll see which system sounds more impressive.

And of course corporations are sold, whether they're cash cows or not.  Until science and medicine can prevent human mortality, allowing people to live and enjoy their business assets forever, privately-held companies are going to be passed from one party to another.   You can't take the factory into the grave with you.

As for B&W being old news...I'm going to assume you've had a little too much cough syrup today.  You know that stuff has alcohol in it, yes?