B&W Sold to a Silicon Valley Startup

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.

bcgator...very well stated.

This is deeply disturbing news - but it mirrors what is happening in some other fields that have traditionally needed high talent levels and were yet niche. Like fashion - where even someone like Dior needed to take external funding from LVMH to keep the level of talent needed to run their ateliers. The truth is that, in the fashion industry, these companies make most of their money selling handbags and perfumes- and the haute couture is mostly for show. It is why people know of the brand, but not the thing that makes money. So they impression they have is one of artisanal creation, rarified talent and prestige - but the thing they make money on is none of those.

This feels like that pinch that made companies like Dior feel like they needed to turn in the mass market direction might be the same thing that affects high end audio as well. After all, there are only so many people that will care about spending $10,000 on a speaker to be run with equally expensive electronics and cables. Probably the same number of people as would buy a $50,000 dress/gown on a regular basis.

I bet if this goes well, B&W will use the influx of cash to continue to make the highly expensive equipment like the Nautilus. That would become their equivalent of haute couture. However, the bulk of what they sell, majority of revenue, their retail channels and accessibility will all become decidedly more mass market.

Strange and sad times.

Wow, i will stay up tonight thinking about this.

I hope he sold it for cash and not worthless stocks.