BREAKING NEWS: Harman International Acquires Sound United for $350 Million

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(May 6, 2025) It’s official: Masimo has reached a definitive agreement to sell its consumer audio business—better known to enthusiasts as Sound United—to Harman International, a wholly owned subsidiary of Samsung. The sale, valued at $350 million, brings a conclusion to a puzzling and ultimately unprofitable chapter for the medical technology firm, which paid nearly $1 billion to acquire Sound United just three years ago.

From the start, Masimo’s decision to buy Sound United in 2022 raised more than a few eyebrows. After all, this was a company known for its pulse oximeters and patient monitors—not amplifiers and loudspeakers. Then-CEO Joe Kiani envisioned leveraging Sound United’s retail channels to distribute health tech directly to consumers. There were also whispers that Masimo was interested in the company’s HEOS streaming platform.

But the marriage of medical tech and high-end audio never quite clicked. Masimo’s stock plummeted 40% within weeks of the acquisition announcement, shedding billions in value. The fallout continued over the next two years, ultimately leading to a leadership shakeup driven by activist investor Politan Capital. Joe Kiani was ousted. A new board was installed. And Sound United’s future was suddenly in limbo.

In late 2024, speculation about Sound United's fate surged after public filings used the accounting phrase “discontinued operation,” triggering fears the entire business might be shut down. That prompted our own coverage pushing back against the doom-and-gloom, clarifying that Masimo was exploring multiple options—including keeping or selling the division—and that brand operations remained healthy and intact.

Now, the roadmap is clear. Harman has stepped in with a $350 million offer, taking control of a portfolio that includes Bowers & Wilkins, Denon, Marantz, Polk Audio, and Definitive Technology. It’s a significant loss for Masimo on paper—roughly a $650 million haircut—but one that refocuses the company on its core healthcare mission.

Harman, meanwhile, gains a powerful expansion to its already impressive audio brand stable. In a statement released this morning, Dave Rogers, President of Harman’s Lifestyle division, said the acquisition "represents a strategic step forward in the expansion of Harman’s core audio business and footprint across key product categories such as home audio, headphones, hi-fi components, and car audio." He continued by explaining: "It complements our existing strengths and opens new avenues for growth. Sound United’s portfolio of world-class audio brands including Bowers & Wilkins, Denon and Marantz, will join Harman’s iconic family of brands, including JBL, Harman Kardon, AKG, Mark Levinson, Arcam, and Revel. Built on a shared legacy of innovation and excellence in audio technology, this combined family of brands, together with the talented employees of both companies, will deliver complementary audio products, strengthen our value proposition and offer more choices to consumers.”

Masimo’s CEO Katie Szyman added: "Since I took over as CEO, a key objective has been refocusing our business to ensure we are allocating time and resources to areas of unmet clinical need and driving growth and operational efficiencies. This transaction aligns with these objectives. Our consumer audio business and its talented team will be well positioned for growth and success under Harman’s leadership."

For Harman, the move consolidates some of the most storied names in audio under one roof. With Samsung’s resources and Harman’s engineering expertise, the future of Sound United’s brands may now be more secure—and more innovative—than ever before.

We’ll be tracking this story closely and will bring you updates as more details emerge.

Related Reading:
 
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(May 6, 2025) It’s official: Masimo has reached a definitive agreement to sell its consumer audio business—better known to enthusiasts as Sound United—to Harman International, a wholly owned subsidiary of Samsung. The sale, valued at $350 million, brings a conclusion to a puzzling and ultimately unprofitable chapter for the medical technology firm, which paid nearly $1 billion to acquire Sound United just three years ago.

From the start, Masimo’s decision to buy Sound United in 2022 raised more than a few eyebrows. After all, this was a company known for its pulse oximeters and patient monitors—not amplifiers and loudspeakers. Then-CEO Joe Kiani envisioned leveraging Sound United’s retail channels to distribute health tech directly to consumers. There were also whispers that Masimo was interested in the company’s HEOS streaming platform.

But the marriage of medical tech and high-end audio never quite clicked. Masimo’s stock plummeted 40% within weeks of the acquisition announcement, shedding billions in value. The fallout continued over the next two years, ultimately leading to a leadership shakeup driven by activist investor Politan Capital. Joe Kiani was ousted. A new board was installed. And Sound United’s future was suddenly in limbo.

In late 2024, speculation about Sound United's fate surged after public filings used the accounting phrase “discontinued operation,” triggering fears the entire business might be shut down. That prompted our own coverage pushing back against the doom-and-gloom, clarifying that Masimo was exploring multiple options—including keeping or selling the division—and that brand operations remained healthy and intact.

Now, the roadmap is clear. Harman has stepped in with a $350 million offer, taking control of a portfolio that includes Bowers & Wilkins, Denon, Marantz, Polk Audio, and Definitive Technology. It’s a significant loss for Masimo on paper—roughly a $650 million haircut—but one that refocuses the company on its core healthcare mission.

Harman, meanwhile, gains a powerful expansion to its already impressive audio brand stable. In a statement released this morning, Dave Rogers, President of Harman’s Lifestyle division, said the acquisition "represents a strategic step forward in the expansion of Harman’s core audio business and footprint across key product categories such as home audio, headphones, hi-fi components, and car audio." He continued by explaining: "It complements our existing strengths and opens new avenues for growth. Sound United’s portfolio of world-class audio brands including Bowers & Wilkins, Denon and Marantz, will join Harman’s iconic family of brands, including JBL, Harman Kardon, AKG, Mark Levinson, Arcam, and Revel. Built on a shared legacy of innovation and excellence in audio technology, this combined family of brands, together with the talented employees of both companies, will deliver complementary audio products, strengthen our value proposition and offer more choices to consumers.”

Masimo’s CEO Katie Szyman added: "Since I took over as CEO, a key objective has been refocusing our business to ensure we are allocating time and resources to areas of unmet clinical need and driving growth and operational efficiencies. This transaction aligns with these objectives. Our consumer audio business and its talented team will be well positioned for growth and success under Harman’s leadership."

For Harman, the move consolidates some of the most storied names in audio under one roof. With Samsung’s resources and Harman’s engineering expertise, the future of Sound United’s brands may now be more secure—and more innovative—than ever before.

We’ll be tracking this story closely and will bring you updates as more details emerge.

Related Reading:
Wow, that's a bargain compared to what Massimo paid
 
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