wanta911 Posted May 3, 2016 Share Posted May 3, 2016 Interesting turn of events at B&W: Speaker Maker Bowers & Wilkins Sells Out to a Tiny Silicon Valley Startup - Bloomberg Link to comment
Norton Posted May 3, 2016 Share Posted May 3, 2016 Interesting turn of events at B&W: Speaker Maker Bowers & Wilkins Sells Out to a Tiny Silicon Valley Startup - Bloomberg An odd story, I don't think it can be described as "selling out" (in the financial sense) when "Eva is backed by at least $20 million in funding" (that must be chicken feed to B&W?) Reads more like a change of minority shareholder to me. Link to comment
The Computer Audiophile Posted May 3, 2016 Share Posted May 3, 2016 Very interesting. Interview: B&W Acquired by Owner of San Francisco 49ers, a Super-Geeky Audiophile - CE Pro Founder of Audiophile Style | My Audio Systems Link to comment
mansr Posted May 3, 2016 Share Posted May 3, 2016 How will this affect the sound of the speakers I bought last year? Link to comment
Cormorant Posted May 3, 2016 Share Posted May 3, 2016 Thanks for the links, wanta911 and Chris. Now that's really biting the bullet and going with the new paradigm: "Atkins acknowledges that his company lacks the expertise needed to build software that communicates with cloud services. Any company that wants to sell speakers at a significant premium would need to integrate high-end hardware with sophisticated software." (Atkins also stands to make a lot of money if Eva Automation goes public some day and is valued at Silicon Valley multiples) My system here Link to comment
Cormorant Posted May 4, 2016 Share Posted May 4, 2016 Based on this Guardian article from last year, it looks like Atkins has been shopping B&W around for a while: B&W owner hopes to become a big noise for speaker firm | Business | The Guardian "However, Atkins, who owns 60% of B&W, recognises he is not getting any younger. His daughter has indicated that she has no interest in taking on the firm. He is clearly preparing to offload the business, having already sold a 40% stake to two private equity investors. Brussels-based Sofina grabbed 20% in 2006 and Caledonia Investments, based in Britain, snapped up the same-sized stake in 2011 for £24m." So with the Eva deal, the private equity investors get to cash out, Atkins gets some more cash from all his hard work and he gets to follow his vision going forward. His remaining stake is potentially valued at Silicon Valley multiples instead of sleepy speaker manufacturer multiples. Eva gets... well, how about we open that to discussion? My system here Link to comment
The Computer Audiophile Posted May 4, 2016 Share Posted May 4, 2016 Eva gets... well, how about we open that to discussion? Eva gets a recognized name and a large dealer network when it's ready to launch the products it has been developing. Founder of Audiophile Style | My Audio Systems Link to comment
Cormorant Posted May 4, 2016 Share Posted May 4, 2016 Makes sense. They also get a seasoned and successful CEO. My system here Link to comment
17629 Posted May 5, 2016 Share Posted May 5, 2016 "Atkins acknowledges that his company lacks the expertise needed to build software that communicates with cloud services. Any company that wants to sell speakers at a significant premium would need to integrate high-end hardware with sophisticated software." To me, that sounds like BS. Link to comment
Patrick Butler Posted May 5, 2016 Share Posted May 5, 2016 That's the modern world we live in. It's not 1985. Best Regards, Patrick Butler B&W Group North America "Atkins acknowledges that his company lacks the expertise needed to build software that communicates with cloud services. Any company that wants to sell speakers at a significant premium would need to integrate high-end hardware with sophisticated software." To me, that sounds like BS. Link to comment
mansr Posted May 5, 2016 Share Posted May 5, 2016 That's the modern world we live in. It's not 1985. I can certainly see a market for better-than-Bose speakers with some built-in smarts. I can also see a continued market for high-end just-speakers. Hopefully this arrangement allows B&W to cater to both. Link to comment
Kal Rubinson Posted May 5, 2016 Share Posted May 5, 2016 "Atkins acknowledges that his company lacks the expertise needed to build software that communicates with cloud services. Any company that wants to sell speakers at a significant premium would need to integrate high-end hardware with sophisticated software." To me, that sounds like BS. Not to me. In general, manufacturers of high end electronics, not only loudspeakers, have deficits in this area. For the most part, they adopt mainstream OEM components and hire-out the programming and/or fall far behind mass-market technology. Kal Rubinson Senior Contributing Editor, Stereophile Link to comment
Distinctive Posted May 5, 2016 Share Posted May 5, 2016 I wonder what will happen with Classė? I am still waiting for the promised upgrade of the Sigma SSP..... Link to comment
17629 Posted May 5, 2016 Share Posted May 5, 2016 Not to me. In general, manufacturers of high end electronics, not only loudspeakers, have deficits in this area. For the most part, they adopt mainstream OEM components and hire-out the programming and/or fall far behind mass-market technology. Of course they have a deficit in this area. Why would B&W need to write software that communicates with cloud services, to begin with? Even if they did, they would probably outsource the project to more qualified people anyway. The quote from Atkins is nothing more than a sales pitch. He's trying to sell his shares of B&W to a technology company. High end audio is completely different from consumer audio. The average person would consider writing new software for cloud integration is naturally a good thing. With products like network receivers, smart tv's, tablet remote controls, etc.. its easy to see why. High end audio enthusiasts know that what motivates a purchase is completely different. Not everyone is aware of that. "Any company that wants to sell speakers at a significant premium would need to integrate high-end hardware with sophisticated software." That's just not true. First, companies like B&W, Wilson, Avalon, Revel.... already sell speakers at a significant premium, and as far as I know, don't have any type of cloud software integration. They probably won't need it in the future either. Component manufacturers in general, are better suited for this type of thing. Maybe they may want to do something like Meridian and put everything in one box, but then you have a whole new set of problems to deal with. Generally speaking, high end audio customers don't like lifestyle systems. Most of us that buy expensive speakers like the 800 series, don't want to lock themselves into a place where they can't upgrade. I had a pair of Meridian 8000 speakers that I ended up not liking after spending a few months with them. My only upgrade choices were cables and transports. No audiophile wants to be trapped in a situation like that. The point I'm trying to make with all of this, is that there's a good chance the buyer doesn’t know all of the specifics that differentiate the high end from mass marker. Link to comment
Cormorant Posted May 5, 2016 Share Posted May 5, 2016 I hear where you are coming from, and have had similar thoughts myself. But one comment -- we don't really have a good idea on what they are planning, so perhaps we can't be so confident in our analysis of their future. One example -- think about ways that high tech (including software) could potentially reduce speaker distortion. Whatever they do on the high-end, it has to be well executed and sound right to your highly trained audiophile ears/brain, of course, that is a given... I think this is a good deal for all sides, including a good deal for the many B&W employees. I think that was probably forefront in Atkin's mind, how to help his employees best. Many will get stock options, they will keep their interesting jobs -- instead of a slow bleed into sleepy speaker oblivion. Silicon Valley plus luxury brands makes sense to me. Like Yu said, there will probably be more deals like this. My system here Link to comment
Kal Rubinson Posted May 5, 2016 Share Posted May 5, 2016 Of course they have a deficit in this area. Why would B&W need to write software that communicates with cloud services, to begin with? Even if they did, they would probably outsource the project to more qualified people anyway.First, the 800 series (which I know and love) is not all of B&W. There are many new products which can benefit from new technologies. Second, I think your analysis does not take into account that new and changing technologies and markets will undoubtedly have an impact on the traditional speaker business, if we could but see into the future. Kal Rubinson Senior Contributing Editor, Stereophile Link to comment
The Computer Audiophile Posted May 5, 2016 Share Posted May 5, 2016 First, the 800 series (which I know and love) is not all of B&W. There are many new products which can benefit from new technologies. Second, I think your analysis does not take into account that new and changing technologies and markets will undoubtedly have an impact on the traditional speaker business, if we could but see into the future. Correct Kal. The sale also includes Classé and Rotel. Founder of Audiophile Style | My Audio Systems Link to comment
17629 Posted May 5, 2016 Share Posted May 5, 2016 First, the 800 series (which I know and love) is not all of B&W. There are many new products which can benefit from new technologies. Second, I think your analysis does not take into account that new and changing technologies and markets will undoubtedly have an impact on the traditional speaker business, if we could but see into the future. I didn't forget about the other lines besides the 800. I used them as an example to show how different buyer expectations become the further you get away from the mainstream. "I hear where you are coming from, and have had similar thoughts myself. But one comment -- we don't really have a good idea on what they are planning, so perhaps we can't be so confident in our analysis of their future. One example -- think about ways that high tech (including software) could potentially reduce speaker distortion." That's my point. No one seems to sure as to what's going on, and that can be a big problem. B&W's entire product line is fairly expensive. Most of what they make is over 1k. As audiophiles, we take for granted that when you put a more expensive, higher revealing speaker in the system, you need to be careful. As you go up the line, the products become more specialized, and because of that, it takes more skill and effort to match the equipment and set it up properly. That's not how most people think. I can't tell you how many times when trying to help someone relatively new to audio, the assumption is always more positive results will be achieved if you by a more expensive speaker. And it makes sense. But the reality is, it usually takes a lot more to get the full potential out of a 10k speaker than a 5k speaker. (Of course, there's always exceptions). Given that, all I'm trying to say here is that if the buyer doesn't know and understand the high end market, things may not go smoothly. The part about software, I'm not too sure what to think. I assume most speaker companies are already using software to design all aspects of the product, including low distortion. If you read the OP, the software mentioned was to integrate speakers somehow with cloud computing. To me, that's a little vague. I'd like to know a little more about how all of that is going to work. Link to comment
Cormorant Posted May 5, 2016 Share Posted May 5, 2016 All I'm trying to say here is that if the buyer doesn't know and understand the high end market, things may not go smoothly. Clearly history shows a lot of failed mergers, so I hear you there. But in this case, Atkins is the CEO of the combined company. Understanding their deficiency, Eva went out and bought understanding of the high end market. The part about software, I'm not too sure what to think. I assume most speaker companies are already using software to design all aspects of the product, including low distortion. I'm talking about reducing distortion in real time, not in the design process. This could take sophisticated software/hardware integration. My system here Link to comment
17629 Posted May 5, 2016 Share Posted May 5, 2016 Maybe I was wrong. I thought Atkins was the one currently with B&W who is trying to sell his shares and get out? "I'm talking about reducing distortion in real time, not in the design process. This could take sophisticated software/hardware integration." Can you be more specific? There's all different types of distortion, and I'm having a hard time visualizing the kind of product you're talking about? What exactly is going to take place in real time? Link to comment
Audio_ELF Posted May 5, 2016 Share Posted May 5, 2016 Correct Kal. The sale also includes Classé and Rotel. Classe yes, but are you sure about Rotel given that Rotel are not part of B&W Group (or at least weren't last I knew around 6 months ago)? Lots of places are stating the deal includes Rotel but I believe it's only distribution of Rotel (and only in certain markets). Despite the gut reaction, I think this is more a refinancing situation than anything ... It was reported a while back Jon Atkins was looking to find new owners https://www.theguardian.com/business/2015/aug/29/soft-spoken-b-and-w-owner-turns-up-sound-for-speaker-firm Eloise --- ...in my opinion / experience... While I agree "Everything may matter" working out what actually affects the sound is a trickier thing. And I agree "Trust your ears" but equally don't allow them to fool you - trust them with a bit of skepticism. keep your mind open... But mind your brain doesn't fall out. Link to comment
audio.bill Posted May 5, 2016 Share Posted May 5, 2016 An employee of The B&W Group stated that the Group was sold (which includes B&W and Classe' companies and distribution of Rotel), but that Rotel retains its independent ownership. Link to comment
Audio_ELF Posted May 5, 2016 Share Posted May 5, 2016 An employee of The B&W Group stated that the Group was sold (which includes B&W and Classe' companies and distribution of Rotel), but that Rotel retains its independent ownership. Thank you for clarifying ... that was my understanding but it was possible things had changed... Its a common mistake that people think Rotel is owned by B&W Group. Eloise --- ...in my opinion / experience... While I agree "Everything may matter" working out what actually affects the sound is a trickier thing. And I agree "Trust your ears" but equally don't allow them to fool you - trust them with a bit of skepticism. keep your mind open... But mind your brain doesn't fall out. Link to comment
Kal Rubinson Posted May 5, 2016 Share Posted May 5, 2016 I didn't forget about the other lines besides the 800. I used them as an example to show how different buyer expectations become the further you get away from the mainstream. Inevitably, the mainstream moves, too. No one seems to sure as to what's going on, and that can be a big problem. As someone recently asked, "Will my 802s sound any different after this sale?" I do not see a real and present danger; just uncertainty. The part about software, I'm not too sure what to think. I assume most speaker companies are already using software to design all aspects of the product, including low distortion. If you read the OP, the software mentioned was to integrate speakers somehow with cloud computing. To me, that's a little vague. I'd like to know a little more about how all of that is going to work.I think that it is far too early to expect anything other than such highly generic and diffuse statements so I do not see a reason for panic. Kal Rubinson Senior Contributing Editor, Stereophile Link to comment
Fitz Music Posted May 5, 2016 Share Posted May 5, 2016 This acquisition brings to mind the Facebook smarty pants with deep pockets who bought and destroyed The New Republic. Qobuz via Aurender N10 > Devialet Expert Pro > Audio Physic Avantera Link to comment
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