Samsung Expands Audio Lineup with Bowers & Wilkins, Denon, and More

Key Takeaways

1. Harman International acquired Masimo Corporation’s consumer audio division for $350 million, gaining brands like Bowers & Wilkins and Denon.
2. The acquisition is fully in cash and awaits regulatory approval, expected to finalize by the end of the year.
3. Masimo is involved in a legal battle with Apple over patent infringement, which impacted their product features on Apple Watches.
4. Samsung aims to strengthen its position as the global leader in the consumer audio market, projected to grow to $70 billion by 2029.
5. The acquisition is seen as a strategic move to enhance Harman’s audio business across various product categories, while Masimo focuses on clinical needs and operational efficiencies.

Samsung’s subsidiary, Harman International, which includes popular audio brands like JBL, Harman Kardon, AKG, Mark Levinson, Arcam, and Revel, has made a big move by acquiring Masimo Corporation’s consumer audio division for $350 million. This deal also includes well-known audio brands such as Bowers & Wilkins, Denon, Marantz, Polk Audio, and Definitive Technology. The transaction is fully in cash and is expected to be finalized by the end of this year, pending regulatory approvals.

Legal Troubles for Masimo

In late 2023, Masimo found itself in a legal battle with Apple, accusing the tech giant of infringing its patents related to pulse oximetry technology, which is used in the Apple Watches to check blood oxygen levels. This lawsuit led Apple to turn off the sensor on their Series 9, Ultra 2, and Series 10 watches.

In October 2024, Apple emerged victorious in the lawsuit, receiving a minimum statutory award of just $250. The federal jury determined that Masimo had knowingly violated several of Apple’s patents.

Future Plans for Consumer Audio

Samsung stated in a press release that their goal is to “solidify our global No. 1 position in the consumer audio market,” which they expect to expand to $70 billion by 2029.

According to Dave Rogers, the President of Harman’s Lifestyle division, this acquisition represents a “strategic step forward in expanding Harman’s core audio business and presence in important product categories such as Home Audio, Headphones, Hi-fi components, and Car Audio.”

Katie Szyman, CEO of Masimo, expressed that the sale will “ensure we are allocating time and resources to areas of unmet clinical need and driving growth and operational efficiencies.” She believes this transaction aligns well with their goals, adding that the consumer audio team will thrive and achieve success under Harman’s guidance.

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