Surely the biggest news of the decade in the audio industry is this week's announcement that Harman has agreed to purchase Masimo Consumer – also known as Sound United, which is the audio arm of the medical products company.

Most did not see this coming, but industry experts already knew it could only ever have been the likes of Apple (which was rumoured to have expressed interest) or Harman, one of the oldest and most established names in audio, that would (or could afford to) cast a net over such a prestigious portfolio of audio brands.

The latter is likely the best outcome consumers could have wished for, even if they didn't know it. Speculating, of course, but Silicon Valley would likely pick the best parts of the tech from across the brands, slipstream it into new Apple TV and ‘Home’ devices, and spin off whatever remained.

But Harman is a different beast. This company is deeply rooted in audio. The Connecticut-based and proudly American company was founded in 1953 and has a long legacy of innovation in the sector. After being acquired by Samsung in 2016, Harman has benefited from a significant injection of resources, and its audio brands have been releasing new and innovative products in quick succession since.

Its extensive portfolio includes JBL, Harman/Kardon, AKG, Infinity, Mark Levinson, Arcam, Crown, Lexicon, and Revel. It's also heavily implanted in the automotive sector, leveraging premium audio brands to help sell vehicles. Its acquisition of Masimo Consumer adds Bowers & Wilkins, Denon, Marantz, Polk Audio, Definitive Technology, Classé, HEOS, and Boston Acoustics to its stable.

This moment marks a significant point in the history of the audio industry. Harman will become the single largest global audio powerhouse, with a dominant position in home audio, AV receivers, headphones, hi-fi components, and car audio. Its sheer breadth of brands allows it to appeal to a very broad range of consumers and audiophiles.

The integration of Masimo's brands fills significant gaps in Harman's lineup, especially in AV receivers with Denon and Marantz, mass-market speakers including Polk Audio and Definitive Technology, and high-end loudspeakers with one of the most recognised brands, Bowers & Wilkins.

Further, HEOS, a mature whole-home streaming platform, could potentially be integrated with Samsung smart TVs and appliances and dovetail with Harman's more recent acquisition of Roon Labs, creating a seamless, vertically integrated audio ecosystem.

The combined entity will likely offer more comprehensive solutions, from entry-level to ultra high-end, across both standalone and connected audio products, and that's the benefit of acquiring such an extensive portfolio of personnel, software and hardware expertise and a multitude of recognisable brands from which to draw on.

The companies' combined expertise and R&D resources will surely accelerate innovation in product design, connectivity, and user experience, leading to what the next generation of audio (and, potentially, video) looks and sounds like. In addition, with Samsung's extensive expertise in consumer-level home automation and smart homes (SmartThings), a clearer picture is beginning to appear.

So, was Harman's purchase a good deal? Masimo purchased Sound United only three years ago for a deal that was reported to be worth over US$1.03 billion. Harman just repurchased the same company for US$350 million in cash. I've always been better at English than Maths, but that's a simple equation. The premium audio market was reported to be worth US$60.8 billion in 2024 but is tipped to grow to $70 billion by 2029. For such a trajectory in this modern, connected world, this is a space worthy of anyone's investment. And Harman will be a large part of every segment of it.

Of course, the market is watching, and rivals will read and forecast this as we do. Harman's acquisition will have some suffering from FOMO, and there is no doubt that we could see further consolidation as other players seek to strengthen their portfolios in response.

Harman's acquisition of Masimo's consumer audio business is set to reshape the landscape of the hi-fi, headphone, and home cinema markets. It will transform it into an unrivalled audio powerhouse, substantially increasing its market share, product diversity, and technological capabilities in the fast-growing global consumer audio sector. So, while Masimo retreats to its healthcare roots, Harman and Samsung see it as a bold bet on the future of premium audio.

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