Sonos IPO?


May be in the works.

http://variety.com/2018/digital/news/sonos-ipo-plans-1202745164/

38 replies

So Sonos goes public, Denon immediately buys enough shares to get a controlling interest and all of the lawsuit stuff goes away.
Yes, but the valuation will include the now proved to be enforceable IP asset, so Denon will still have to pay for it. And from a global distribution and service support standpoint, it won't automatically be a bad thing.
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Saw that the other day also... should be interesting, for sure. More info about the business side of the company will finally be available to the masses.

So Sonos goes public, Denon immediately buys enough shares to get a controlling interest and all of the lawsuit stuff goes away.Not that such a thing couldn't have happened privately also... it just would have been harder and definitely less visible.
Would it be harder before an IPO when there are just a few owners to deal with and a lot less regulatory oversight? I suspect not, based on my Indian experience, but I don't know about the US.

On the acquisition subject, Denon may be a better owner to keep things moving forward compared to Apple/Amazon/Google who may well do this to eliminate competition for their hardware as well as services.
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And I guess the good support will all but disappear?
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From the Verge:

Sonos files for an IPO that may value the company at $3 billion
It could happen as soon as June

https://www.theverge.com/2018/4/25/17282522/sonos-ipo-initial-public-offering-sec-filing-june-2018
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Speaker Maker Sonos Cuts 6% of Workers Ahead of Public Offering

https://www.bloomberg.com/news/articles/2018-05-18/speaker-maker-sonos-cuts-6-of-workers-ahead-of-public-offering
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It's happening
https://www.marketwatch.com/story/smart-home-audio-company-sonos-files-to-go-public-2018-07-06


Sonos Inc., the smart home sound system company, filed Friday to go public. The company has applied to be listed on the Nasdaq Global Select Market under the ticker symbol "SONO." The company said it plans to raise up to $100 million in the initial public offering, but that amount was estimated as a placeholder amount. The company reported a net loss of $14.2 million in fiscal 2017, which ended Sept. 30, 2017, compared with a loss of $38.2 million in fiscal 2016 and a loss of $68.8 million in 2015. Revenue increased to $992.5 million in fiscal 2017 from $901.3 million in 2016, and from $843.5 million in 2015. The lead underwriters of the IPO are Morgan Stanely, Goldmans Sachs and Allen & Co. The company is looking to go public at a time that the Renaissance IPO ETF IPO, +0.40% has gained 6.3% over the past three months and the S&P 500 SPX, +0.69% has tacked on 5.1%.
The company reported a net loss of $14.2 million in fiscal 2017, which ended Sept. 30, 2017, compared with a loss of $38.2 million in fiscal 2016 and a loss of $68.8 million in 2015.
Which also means we have benefited from great deals on the pricing front!
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Wow, they're some losses and for some years too. Appears Sonos have been nowhere near the profitable company many have been completely assuming they were - especially when comparing them to other companies who haven't made a profit for years too.
The loss trend certainly seems to be going the right way but quite a shock nonetheless.
Frequently, in the tech world, it's about potential, rather than current operations.
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14m in losses are relatively small all things considered.
I'm curious. Are there any definite hints that Denon is planning a takeover once Sonos goes public or is it pure speculation at this point?
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Wow, they're some losses and for some years too. Appears Sonos have been nowhere near the profitable company many have been completely assuming they were - especially when comparing them to other companies who haven't made a profit for years too.
The loss trend certainly seems to be going the right way but quite a shock nonetheless.


Yes I agree, the losses are really surprising, I had read some opinions on here and elsewhere about how they have more than a billion in revenue (not in the last three years) and that they are highly profitable (not the last three years). But as you say things are going in the right direction.

Another really interesting point from the disclosure is that Amazon can pull the plug on Alexa with little notice and Amazon could charge a fee for access

https://www.engadget.com/2018/07/06/sonos-ipo-public-filing-amazon-alexa-challenge/
I'm curious. Are there any definite hints that Denon is planning a takeover once Sonos goes public or is it pure speculation at this point?

I think it will be Logitech. They are going to do a squeeze play on the stock as soon as it goes public.


I think it will be Logitech.


Yikes! That's a scary thought. They'll destroy Sonos.
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I'm curious. Are there any definite hints that Denon is planning a takeover once Sonos goes public or is it pure speculation at this point?

I think it will be Logitech. They are going to do a squeeze play on the stock as soon as it goes public.

If they do, I'm out as soon as it happens. Logitech has already tried this when they acquired Slim Devices (aka Squeezebox). You see where they are now. I don't think enough of Logitech's product development culture has changed over the years to allow Sonos to continue being successful if Logitech picks them up.

BTW, Denon is owned by a private equity firm now, Sound United, a division of DEI Holdings. That deal apparently happened March 1 last year. So it seems weird that Sonos would be going public, just to be bought by a private equity firm. BTW, this private equity firm also has hands into Boston Acoustics and Polk Audio. Unless they're looking to build an audio powerhouse to compete against the likes of Bose (Boston/Polk/Sonos audio engineers/speaker design, D&M home theater products, and Sonos smart speaker tech)...
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I did not find the exact date for the IPO.
Do you know when?
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Got to feel sorry for the 96 people forced out, probably loyal, hard working, long service, so that sonos top dogs can get a better price for a company they have been running at losses for past 3 years. Should the finance director not be first in line?
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Frequently, in the tech world, it's about potential, rather than current operations.I wouldn't generally put Sonos in that bracket though. They're often referenced as a billion dollar turnover company and compared to others that continuously lose money. A billion dollar turnover company should make a profit at this point in their history.
14m in losses are relatively small all things considered.Try telling that to all the people who have lost their jobs. That's the sort of figure that decides these things in a company of Sonos's size - obviously.
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If it's like the UK, then if its over 100 people they have to give 90days notice, so companies do tranches of 99 max...
I'm curious. Are there any definite hints that Denon is planning a takeover once Sonos goes public or is it pure speculation at this point?

I think it will be Logitech. They are going to do a squeeze play on the stock as soon as it goes public.

If they do, I'm out as soon as it happens. Logitech has already tried this when they acquired Slim Devices (aka Squeezebox). You see where they are now. I don't think enough of Logitech's product development culture has changed over the years to allow Sonos to continue being successful if Logitech picks them up.

BTW, Denon is owned by a private equity firm now, Sound United, a division of DEI Holdings. That deal apparently happened March 1 last year. So it seems weird that Sonos would be going public, just to be bought by a private equity firm. BTW, this private equity firm also has hands into Boston Acoustics and Polk Audio. Unless they're looking to build an audio powerhouse to compete against the likes of Bose (Boston/Polk/Sonos audio engineers/speaker design, D&M home theater products, and Sonos smart speaker tech)...


At least if Logitech buys up enough stock to get a controlling interest they will probably bring back a hard button remote to the product line. They might even add a line-in jack to the Sonos One so it can be used as a computer speaker.
At least if Logitech buys up enough stock to get a controlling interest they will probably bring back a hard button remote to the product line. They might even add a line-in jack to the Sonos One so it can be used as a computer speaker.
Dream on!
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A lot of speculation here. I'm not an expert in this area, but I doubt that this IPO means that another company could buy up a controlling interest in Sonos. I would assume that the existing owners will still have enough interests to prevent that from happening.

As far as the CFO being held responsible for the layoff, why? Why assume that the CFOs decisions are ultimately responsible for the layoffs? Was it his (or her) decision for the IPO? Why he responsible for sales numbers? Was he responsible for the shift in the companies focus, requiring different skills then what they currently have on staff?

I just don't see the point of making baseless assumptions around this. Wait and see.
Without baseless assumptions, this place would have about 1/10th the traffic it has now.

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