Harman being sold???

  • Thread starter Thread starter SRR
  • Start date Start date
SRR

SRR

New member
Discuss freely here....

"WASHINGTON, DC — Harman International Industries, Inc. (NYSE:HAR), parent company to the Harman Professional Group whose brands include JBL, Lexicon, BSS, AKG, dbx, Soundcraft and Crown, announced April 26 that it has entered into an agreement to be acquired by affiliates of Kohlberg Kravis Roberts & Co. L.P. (KKR) and Goldman Sachs Capital Partners (GSCP) in a transaction valued at approximately $8 billion."
 
Yup. Having a holding firm own a bunch of companies that make musically-oriented audio products usually isn't a good thing. Think "CBS-owned" Fender...
 
kid klash said:
Yup. Having a holding firm own a bunch of companies that make musically-oriented audio products usually isn't a good thing. Think "CBS-owned" Fender...
Click to expand...

KKR is known as a break-up specialist; probably Harman's owners wanted to cash out. Thus the holding firm may go away, or become a few more focused companies. It's hard to say exactly, but KKR will want their return on investment, they are rather particular about that . . .
 
kid klash said:
Yup. Having a holding firm own a bunch of companies that make musically-oriented audio products usually isn't a good thing. Think "CBS-owned" Fender...
Click to expand...

Take the bad with the good. If it wasn't for things like that happening, 90% of the stuff we get probably wouldn't be available.
 
boingoman said:
Take the bad with the good. If it wasn't for things like that happening, 90% of the stuff we get probably wouldn't be available.
Click to expand...

I can't think of one good thing that came from the CBS Musical Instrument Division days. All they did was bleed Fender, Steinway, Gulbranson, Lyon and Healy, Gemeinhart and the others, and then they dumped them. I was there and lived through the "slash and burn" mentality that nearly ruined all of those companies.

But who knows? Maybe KKR and GSCP are more considerate and compassionate. Riiiiiiight...
 
kid klash said:
I can't think of one good thing that came from the CBS Musical Instrument Division days. All they did was bleed Fender, Steinway, Gulbranson, Lyon and Healy, Gemeinhart and the others, and then they dumped them. I was there and lived through the "slash and burn" mentality that nearly ruined all of those companies.

But who knows? Maybe KKR and GSCP are more considerate and compassionate. Riiiiiiight...
Click to expand...

I'll grant corporate ownership can have some serious negative effects, but there's no saying any of those companies would have done any better on their own. Take Steinway, which has always been in and out of trouble, before and after CBS. And in the past, cut quality to boost sales and stay afloat. But that gets forgiven because the guy who did that was named Steinway. CBS made a huge mistake with Fender, that's for sure, they should have started Squier a lot earlier to stay competitive with the flood of cheap imports and left the main line alone. Anyone could have made that mistake, though.

This thing with KKR, who knows? Harman could be a PITA to deal with. If they spin off some of the brands, hopefully they will be able to survive on their own again.
 
Time will tell. I wish all the Harman employees the best.
 
AKG too?

Isnt AKG part of the Harmon Group or distributed by them here in the U.S.?
 
Add to that list Digitech, DOD, Art, Studer, Allen Heath, Amek, and probably more. This change may be for the better, may be for the worst, or may not make a bit of difference. It's really hard to tell. My gut says it will be for the better. Having been a dealer for many of the Harman lines, and knowing a lot of people that work in various different jobs directly through Harman and some of their companies, Harman has never been a real gem to work with.
 
You must log in or register to reply here.
Back
Top