Audiovox buying Klipsch Group

Danny Tse

Remember Acoustic Research (AR) and Advent? Will we see the last of Klipsch, Mirage and Energy?

From TWICE (This Week in Consumer Electronics)....

Las Vegas - Audiovox came to International CES with the announcement that it intends to buy Klipsch Group, the home-speaker maker whose brands include Klipsch, Jamo, Mirage and Energy.

Audiovox said it recently signed a non-binding term sheet to purchase all of the shares of Klipsch Group and its worldwide subsidiaries.

The transaction is subject to the completion of due diligence, negotiations, and signing of definitive agreements and requisite approvals, Audiovox said.

Audiovox said it expects to finance this transaction through a combination of cash and a committed credit facility. Additional terms of the transaction were not disclosed.

coolsax

This is sad news indeed if this is the end of Klipsch, while not necessarily my cup of tea, they are an Iconic brand and it will be disappointing if Audiovox were to turn it upside down. It will be even more disappointing if this completely kills the recently acquired Jamo, Mirage, and Energy. Definitely a fan of the Jamo sound myself.

Glowrdr

coolsax wrote: »

This is sad news indeed

What are you talking about? This is great news! Klipsch and Mirage speakers will be 39.99/pr in 2012. Yay us..... :frown:

tonyb

Glowrdr wrote: »

What are you talking about? This is great news! Klipsch and Mirage speakers will be 39.99/pr in 2012. Yay us..... :frown:

Yeah,and built like a 39.99/ pr. speaker. Klipsch has some good stuff and a good following to boot, though not my cup of tea either, sad to see an Icon get sold down the river.

polkfan38

Is this the same Audiovox from the 80s that made some absolutely horse crap stuff? How does this happen? Tonyb is right. Klipsch makes some good stuff but, not to my liking either.

cnh

Although not a fan of the horn, myself. The Klipsch Reference series was always a big seller and a powerful SPL producer and well-reviewed as well. And vintage Klipsch are well worth their bluebook price.

As for Energy, I bought my RC bookshelves last summer and they're sitting on my desk. Very nice! There will still be the used market?

Though I can't believe this is that 'same' Audiovox...where would they get the money to buy anything?

cnh

madmax

Samsung used to be the crap product on the table and I never thought that name would ever amount to anything. I now have great appreciation for items with the samsung name badge on it. Maybe Audiovox will surprise us. It is a cool name too if you had first heard it today without the stigma attached.

Tour2ma

IMO Klipsch has done a fine job of damaging their brand for a while now... can Audiovox be much worse?

In their day (late-40's through the early 60's) when the transistor was just being born and decent sand amps were only a dream, the high sensitivity Klipsch designs, epitomized by the corner-loaded 'Horns", were a Godsend.

I hope they are treated well at Audiovox...

polkfan38

Well, all we can do is wait and see. I am sure they will run out the current model line and then start to make changes.

Pycroft

I know little about the 'history' of speakers. Can someone shed some light on what the deal is with Audiovox?

treitz3

So, let me think here for a moment....just a random thought I felt like sharing.....

Audiovox, the K-mart/Target/Sears of all audio sells so much crap that it gets enough promised dough to purchase the shares of Klipsch, Jamo, Mirage and Energy. I see. You cater to the crap sound and you get dough. No wonder I-pods, BLOSE and MP3s are big hits.

Rights to the name only, perhaps? No technology, inside juice or proprietary knowledge shared? Lord, I hope so or the audiophile and casual listener who enjoys great sounding music is dead.

Conradicles

So this would be like Polk Audio being bought out by Emerson correct?

coolsax

yeah something like that

halo71

Conradicles wrote: »

So this would be like Polk Audio being bought out by Emerson correct?

or....Bose

Upstatemax

Just have to wait and see what happens...

Never know, they might want to break into quality audio and the best way to do that is to own established brands.

Kind of like Geely buying Volvo... They want to break into the Euro market, so buy a Euro brand and get to work.

In both situations it could be the end of a long standing quality brand, or a cash infusion that leads to great things.

treitz3

...or bust.

dcoil

Pycroft wrote: »

I know little about the 'history' of speakers. Can someone shed some light on what the deal is with Audiovox?

You must be on the younger side. If you know what a 'boom box' is, that's what I associate with Audiovox:eek:

IRLRaceFan

According to wikipedia, Audiovox is an American company in New York.
Of course that doesn't mean their products are made in North America...

http://en.wikipedia.org/wiki/Audiovox

indyhawg

I am still in disbelief over this. I am hoping that Audiovox will let Klipsch operate independently. Klipsch started going downhill when they started having speakers built outside of Hope.

Glowrdr

I think that's all that keeps Audiovox in business... Hope and a prayer.

dudeinaroom

I'm not a Klipsch fan but all I can say is NNNNOOOOOOOOOOOOOOOOOOOOOOOOOO. Audiovox destroys every thing they acquire.

Danny Tse

Upstatemax wrote: »

Never know, they might want to break into quality audio and the best way to do that is to own established brands.

But Audiovox purchased Acoustic Research and Advent, 2 very important brands in loudspeaker history. And look what happened to both brands.

I just don't see Audiovox having the knowledge to know how to manufacture or market quality speakers. I can see the Mirage and Energy brands eventually pasted on surge protectors, TV antennas, and cables. Klipsch may stick around longer in the loudspeaker business, but I see the Klipsch name on cheaply-made computer speakers (I'm not talking about speakers like Klipsch's previous THX-certified computer speakers which sound quite good).

leftwinger57

This is truely horrifying to me. I'am a Klipsch owner and do want to go down their
heritage line. Fortes, Heresey, Cornwalls.This does remind me of Fisher selling to the Japanese and we all what happened there.On the other hand it could be like D&M holding
who now owns Denon, Marantz, Macintosh and other high end brands.

TECHNOKID

leftwinger57 wrote: »

This is truely horrifying to me. I'am a Klipsch owner and do want to go down their
heritage line. Fortes, Heresey, Cornwalls.This does remind me of Fisher selling to the Japanese and we all what happened there.On the other hand it could be like D&M holding
who now owns Denon, Marantz, Macintosh and other high end brands.

Klipsch is far from being high end and with audiovox acquiring them will be even further from it...

pitdogg2

Klipsch also bought this and then trashed it heres a sample.

"Klipsch buying out, and completely abandoning, the Aragon brand 8 years ago. This occurred when Klipsch purchased selected assets of the privately held Mondial Designs Ltd. in 2001, acquiring the Aragon and Acurus brands of high-end amplifiers, preamplifiers and processors. Now, predictably, the leading global manufacturer of loudspeakers is selling the rights to these electronics brands. What wasn't predicted is that they would sell them to two former Klipsch employees.

According to Mike Klipsch, president of the Klipsch brand, Klipsch purchased the brands because, at the time, it was aggressively seeking new ways to enhance its sound experience and wanted to develop perfectly matched, electronic solutions under the Aragon name. While this sounds nice, the truth is revealed more clearly in the results of the acquisition. Klipsch may have had good intentions, but at least with respect to Aragon, the brand was left to sit and collect dust - effectively ruining the product line. In 2005 they made it official and ceased production of the Aragon line, though they honored warranty terms and provided some customer support. "

TECHNOKID

pitdogg2 wrote: »

Klipsch also bought this and then trashed it heres a sample.

"Klipsch buying out, and completely abandoning, the Aragon brand 8 years ago. This occurred when Klipsch purchased selected assets of the privately held Mondial Designs Ltd. in 2001, acquiring the Aragon and Acurus brands of high-end amplifiers, preamplifiers and processors. Now, predictably, the leading global manufacturer of loudspeakers is selling the rights to these electronics brands. What wasn't predicted is that they would sell them to two former Klipsch employees.

According to Mike Klipsch, president of the Klipsch brand, Klipsch purchased the brands because, at the time, it was aggressively seeking new ways to enhance its sound experience and wanted to develop perfectly matched, electronic solutions under the Aragon name. While this sounds nice, the truth is revealed more clearly in the results of the acquisition. Klipsch may have had good intentions, but at least with respect to Aragon, the brand was left to sit and collect dust - effectively ruining the product line. In 2005 they made it official and ceased production of the Aragon line, though they honored warranty terms and provided some customer support. "

Then I guess Klipsch own medicine is simply coming back to them? Good for them! While Klipsch has a good reputation in the speaker business, I never cared for the brand so if the brand dies it will not affect me as long as long as it doesn't affect the speaker competing market negatively.

Danny Tse

pitdogg2 wrote: »

Klipsch also bought this and then trashed it heres a sample.

Don't forget after Klipsch's purchase of Canada's API, it also ceased production of Athena Technologies speakers. At the time, Athena was riding high with its success of its inexpensive speakers that punched above their respective prices.

Danny Tse

leftwinger57 wrote: »

This is truely horrifying to me. I'am a Klipsch owner and do want to go down their heritage line. Fortes, Heresey, Cornwalls. This does remind me of Fisher selling to the Japanese and we all what happened there.On the other hand it could be like D&M holding who now owns Denon, Marantz, Macintosh and other high end brands.

Yeah, Boston Acoustics lucked out when D&M purchased them. However, Snell wasn't so lucky.

TECHNOKID

Danny Tse wrote: »

Don't forget after Klipsch's purchase of Canada's API, it also ceased production of Athena Technologies speakers. At the time, Athena was riding high with its success of its inexpensive speakers that punched above their respective prices.

You are right about that one too! It is sad truth that a company will buy a good competitor with the sole purpose of driving the company to the ground. When Athena was bought and driven to its deth it was to favor Energy market wise.

DeadFeat1

Danny Tse wrote: »

Yeah, Boston Acoustics lucked out when D&M purchased them. However, Snell wasn't so lucky.

I believe Snell continues to exist and is manufactured in the same facility as Boston Acoustics...

Danny Tse

DeadFeat1 wrote: »

I believe Snell continues to exist and is manufactured in the same facility as Boston Acoustics...

From April 2010....D&M discontinues Snell