Apple Buyout Targets Could Include Sonos, JPMorgan Says

  • 5 February 2019
  • 5 replies
  • 539 views

Ya never know. It would suck big time, though.

https://finance.yahoo.com/news/apple-buyout-targets-could-netflix-141628746.html

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5 replies

Userlevel 7
Badge +22
That would be an interesting proposition. As opposed to a leverage buyout Apple and Sonos might be better served if Apple where to bring Sonos in as a subsidiary rather than absorbing it into it's ecosystem (a' la Beats). Sonos would continue to exist on its own with an Adrenalin like cash boost.

Apple had no competing product with Beats as it does with Sonos (i.e. Apple HomePod). As to which Sonos speaker you would compare to the HomePod I'll leave that for you to decide. Sonos also reaches a wider market in that it also has appeal to the HT buyer where as the HomePod can't compete in that arena. Yet another reason to go the subsidiary route. Marketing strategies could develop independently as well.

This is all speculation. It would be interesting to hear from others. Cheers!
Userlevel 7
Badge +21
Yea, I saw that one. It honestly doesn't make a lot of sense to me. I get that Apple has some money to spend, but I don't think Sonos really fits with what Apple products have tried to do in the past. Primarily, I'm thinking of the closed environment/ecosystem strategy, which Sonos definitely is not. There is a reason that the Homepod only plays Apple music. If Apple bought Sonos, removing Alexa, canceling Google integration, and removing all but Apple music service would kill the product. So they wouldn't be able to do that, and Sonos would just be a separate profit center. But I don't think it would be as profitable if owned by Apple in that regard as they would probably have a harder time negotiating agreements.

There could be some synergies by tying in with Homepod, AppleTV, and possibly bringing Siri to Sonos, but I'm not sure that would make it worth the investment.

I also think that there might be some competition for the product I could see Amazon making an offer, possible Google...maybe a relative outsider like Samsung. And although the current stock price is low, I don't think this is the best time to buy Sonos. I kind of think that time has passed, and I'm think Sonos wasn't interested in selling.
Userlevel 7
Badge +20
I agree with @melvimbe: I don't see the strategic fit, even if it is only pocket money for Apple to acquire Sonos.

Apple generally makes relatively small acquisitions that fill gaps in its capabilities, rather than acquisitions that would fill in its product lines or increase its market share. Beats is the only exception I can think of, but the strategic fit was good in that case.
It sure would be interesting, especially to see how Apple would integrate it in with products. With that said, i do not hope that it is going to happen, and i dont think its very likely.
Well, Sonos apparently holds more patents than any other consumer electronics company except Apple. Apple could use the patents to do serious damage to the whole home music player competition, and they certainly aren't above doing so. I wonder how Google and Amazon, for example, are getting away with multi-room WiFi music, when Sonos holds all the basic patents?