NEWS: Sound United acquire D&M Group

Discussion in 'AV Receivers & Amplifiers' started by hodg100, Mar 1, 2017.


    1. hodg100

      hodg100
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    2. Steve Stifler

      Steve Stifler
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      Maybe this explains why they were absent for the Bristol Sound and Vision show this year?
       
    3. dante01

      dante01
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      So does this mean that Sound United have also purchased Yamaha? :confused:


      :)


      The big question is how well will Sound United do in next year's premier league?
       
    4. Dubliner1

      Dubliner1
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      Don't like all these mergers may make it harder to find a bargain due to price fixing/control.
       
    5. HugoFJH

      HugoFJH
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      Think this is sad news to be honest, I dont believe D+M were struggling financially, so it would have been better for the consumer imo if they had been left as they were rather than swallowed by a bigger distributor

      Even less choice going forward
       
    6. ian34g

      ian34g
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      Not totally sure I agree with that. The other brands under Sound United are speaker manufacturers not the electronics hardware that D&M produce. slight crossover with some bluetooth type of speakers maybe.
       
    7. Lesmor

      Lesmor
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      Now that D&M Group has been sold to Sound United do you think the Denon and Marantz brand will still co-exist, or even exist at all?
       
    8. ian34g

      ian34g
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      Depends on how they see them positioned in the marketplace.
      The existing speaker brands they have are seen as offering enough of a difference with Def tech as the high end home cinema and Polk more Hi-fi.
      Are Denon and Marantz sufficiently far apart?
      I thought several of the models were just in different casings? Same software ect.
      Marantz is generally viewed as the higher end with separate processors and amps ect. But Denon used to have those models (iirc) so the choice understandably looks to have been compromised already.
       
    9. Joe Fernand

      Joe Fernand
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    10. Dunners

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      A couple of observations...
      The press release notes that D+M was the biggest supplier of receivers worldwide, but supplied no data to back that up. From what I understand, the brands on their own were not, but maybe it's true if you combine Denon's larger sales with the smaller sales of Marantz? They talk up their multi-room chops (PlayFi) so um... exaggerate much?

      I guess the sale to another private equity firm had to happen though, Bain Capital were noted to have failed to re-structured D+M's debt a while ago, plus the rumours about cost cutting (no longer having their own factories for everything but the top end Marantz etc) have been circulating for a long time.
      What another PE Firm will do with the company, well who knows.
      But, having worked for a firm that was taken over by a PE company in the past, I can tell you that the very first thing to happen is cost cutting...

      Obvious places to cut costs:
      Put Heos into the Polk Omni range of product, I mean, DTS PlayFi, really? They'll currently be forking out $4 US for every PlayFi chip, so buying from their own company makes sense!
      That would increase the Heos eco-system and cut costs at the same time.
      Drop the receivers that are too close to each other (SR5011 / AVR2300 as an example).
      Reduce the 'tweaky Marantz and Denon products that look good in press releases, but frankly, never really sell.

      It will be good for Polk fans, they'll most likely get one of the genuine potential Sonos challengers in their stable.
      It'll be bad for Marantz fans, as smaller selling, somewhat esoteric kit may not go so well in the eyes of senior management.
       
    11. pressure

      pressure
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      Excellent and insightful post @Dunners thank you. Any idea of the breakdown in denon and marantz' revenue between home av and the pro stuff? Might tell us whether "our" AV side is likely to get corporate love or not.
       

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