Quickie: Masimo exits consumer audio after backlash. Samsung’s Harman steps in - and the AV world just got a major reshuffle.
1. The Announcement
In May 2025, Harman International (a subsidiary of Samsung Electronics) announced the acquisition of Sound United’s consumer audio portfolio from Masimo for $350 million. This includes legendary brands such as Denon, Marantz, Bowers & Wilkins, Polk Audio, HEOS, and Boston Acoustics. The deal is expected to close by the end of 2025, pending regulatory approvals.
2. Background: Masimo’s Foray and Fallout
Masimo, a leader in medical technology, acquired Sound United in 2022 for $1 billion in an attempt to diversify beyond healthcare. However, this move was met with harsh criticism from investors. Within months, the company’s market value dropped by nearly $5 billion. The backlash led to the entry of activist investor Politan Capital Management, who gained board control and ultimately removed Masimo’s founder and CEO Joe Kiani. Under new CEO Katie Szyman, Masimo reversed course and chose to exit the consumer audio business entirely.
3. What Harman Gains
This acquisition is a strategic jackpot for Harman. Already home to brands like JBL, AKG, Harman Kardon, and Mark Levinson, Harman now adds:
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Denon and Marantz – leaders in AV receivers.
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Bowers & Wilkins – iconic audiophile speakers.
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Polk Audio – popular budget speaker brand.
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HEOS – a multi-room wireless audio platform that rivals Sonos.
Harman had also previously launched JBL-branded AV receivers, signaling their intent to compete more seriously in the AVR space. With this acquisition, they gain the engineering depth and brand legacy of Denon and Marantz to strengthen that position further.
With this move, Harman now owns four distinct AVR brands:
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Arcam - for high-end, audiophile-grade setups.
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JBL - aiming at cinema-first and mass-market appeal.
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Denon - for tech-savvy enthusiasts and broad home theater consumers.
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Marantz - premium musicality with refined design.
This positions Harman as a dominant force across every segment of the AVR market.
4. Samsung’s Long Game
Harman is not acting alone. Samsung’s bigger play here is vertical integration:
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Imagine Denon processing in Samsung TVs.
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HEOS powering Samsung’s smart home ecosystem.
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B&W drivers in Galaxy smartphones or automotive sound systems.
This acquisition lets Samsung tie high-end audio into its wider hardware and software ecosystems, from living rooms to luxury cars.
5. Consumer Impact: Pros and Cons
Upsides:
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Stronger R&D, better integration across platforms.
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Future-ready AV receivers with broader smart ecosystem compatibility.
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Potential innovation at scale.
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Harman provides 3 to 5 years of on-site warranty support across their product range, a major upgrade from the 1-year carry-in warranties offered by Denon and Marantz under Masimo.
Concerns:
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Risk of brand dilution (e.g., Denon and Marantz losing identity).
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Potential lock-in to Samsung-centric ecosystems.
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Disruption during the transition phase.
6. Dealer & Distributor Concerns
Harman is known for centralizing operations and controlling pricing tightly. Key questions arise:
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Will Harman maintain current distribution networks, especially in markets like India?
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Will they restructure or regionalize dealership access?
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Could existing dealers lose pricing flexibility?
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Will warranty policies and service networks change?
Currently, Denon has two separate distributors in India: Profx and PTC. While the final structure is yet to be announced, it's worth noting that in the past, Harman worked exclusively with PTC for distributing JBL and Revel in India. That relationship eventually ended, and Profx took over distribution responsibilities for these brands. Given this history, it's reasonable to anticipate that Harman may now continue with Profx for Denon and Marantz as well, though no official confirmation has been made.
What makes this transition particularly intriguing is that Marantz has always been synonymous with MZ Audio in India. For years, MZ Audio built Marantz’s presence, reputation, and trust across the country. Marantz leaving MZ Audio is almost unimaginable to many in the industry. It’s not just about distribution - it’s about legacy, deep-rooted loyalty, and decades of credibility that MZ has fostered with both dealers and audiophile customers.
That said, with Harman now at the helm, strategic restructuring is inevitable. If a transition were to happen, it wouldn’t be easy - logistically or emotionally. But if it does happen, it could completely redraw the power map of India’s high-end audio distribution.
This could simplify consolidation from Harman’s perspective but may also leave loyal dealer networks in a transitional and uncertain phase.
For dealers, this shift might require renegotiation or realignment with Harman’s policies.
7. Brand Identity at Risk?
Denon and Marantz have long been praised for their distinct philosophies:
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Denon: Mass appeal with cutting-edge features.
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Marantz: Warm, audiophile-grade musicality.
The concern: will these philosophies survive Harman’s corporate structure? Or will we see a homogenized product line where differences blur?
Harman’s history with AKG and Arcam shows mixed results. It’s a wait-and-watch game for now.
8. Brand Overlap Challenge: JBL vs Denon vs Marantz
With Harman now owning JBL, Denon, and Marantz and all targeting the mid to upper-mid AVR market, the brand overlap is a real concern.
| Brand | Segment | Focus |
|---|---|---|
| Denon | Mid to High-End AVR | Feature-packed, value-for-money |
| Marantz | Mid to High-End AVR | Musical, premium lifestyle AVRs |
| JBL | Mid-Range AVR | Cinema-first, punchy sound for mass use |
Problem: Consumers and dealers now face too much choice in the same bracket.
Fix: Harman must define each brand’s purpose clearly or risk internal cannibalization.
9. Why Launch JBL AVRs if Denon/Marantz Were Coming?
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Development Lag: JBL AVRs were likely in pipeline well before the Sound United deal was finalized.
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Backup Strategy: JBL AVRs may have been Plan B if Denon/Marantz didn’t materialize.
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Samsung’s Vision: JBL AVRs could evolve into a separate SmartThings-integrated, TV-centric AVR range unlike traditional setups.
Either way, JBL AVRs may get repositioned or phased out depending on how Harman aligns its portfolio.
10. Impact on India: Yamaha’s Exit Changes the Game
Yamaha has recently shut down its India operations. This leaves a massive void in the AVR segment that Denon, Marantz, and even JBL are perfectly poised to fill. With fewer active players, Harman’s dominance in India becomes even more pronounced. If not managed wisely, this could border on monopoly.
11. Will Harman Manage All Four AVR Brands Well?
Yes, if:
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Clear segmentation is maintained.
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Engineering isn’t copy-pasted across models.
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Dealer policies respect brand uniqueness.
No, if:
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Brand overlap isn’t resolved.
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Dealers are forced to push competing models.
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One brand gets neglected or absorbed into another.
12. Final Take
Masimo got burned trying to play outside its lane. Harman and Samsung, on the other hand, have made a calculated power play that could reshape the audio landscape.
For consumers, this means better tech but less freedom.
For dealers, it’s time to adapt or be left out.
For the AV industry, the game just changed.
And as always.. when giants fight, the ecosystem evolves. Let’s hope it’s for the better.
