Logitech Acquires Blue Microphones for $117 Million in Cash

Discussion in 'Mac Blog Discussion' started by MacRumors, Jul 31, 2018.

  1. MacRumors macrumors bot

    MacRumors

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    Logitech has announced its acquisition of Blue, the California-based maker of studio-quality microphones, in a $117 million cash deal.

    Blue, creator of the popular Yeti and Snowball microphone lines, will join Logitech's portfolio of other brands, which includes Jaybird, Ultimate Ears, and ASTRO gaming.

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    In a blog post, Logitech CEO Bracken Darrell explained how the acquisition would allow the firm to expand into the growing broadcast market and complement its existing range of accessory products.
    In a separate blog post, Blue Microphones CEO John Maier said he was "super excited" about the partnership, which would allow his firm to continue making "the coolest microphones on the planet".
    Logitech has gained a favorable reputation for acquiring companies with a view to investing in established brands, so the purchase shouldn't overly concern fans of Blue products going forward.

    Article Link: Logitech Acquires Blue Microphones for $117 Million in Cash
     
  2. cicalinarrot macrumors regular

    cicalinarrot

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    $117 Million in Cash.
    Logitech CEO be like "Honeyyy! Where's my suitcase? ...no, not that one, the big one!"
     
  3. TimmeyCook Suspended

    TimmeyCook

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    #3
    Audio hardware must be the tech segment that has the largest margins ever.
     
  4. Onexy macrumors regular

    Onexy

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    Is there a single reason for a cash deal except avoiding taxes?
     
  5. Isidore macrumors member

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    #5
    You clearly have no idea what ‘cash’ means in the context of buying the shares of another company. It just means buying the shares for money rather than for example exchanging them for shares or bonds in Logitech. There are no used $100 bills in brown paper bags. The ‘cash’ will be in the form of bank transfers.
     
  6. shpankey macrumors regular

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  7. Purple Pear macrumors newbie

    Purple Pear

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    #7
    Hope they fare better under Logitech than Slim Devices did.. :(
     
  8. newyorksole macrumors 68040

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    #8
    Logitech makes money hand over fist selling $40 screen protectors at Apple Stores.
     
  9. mdriftmeyer macrumors 68030

    mdriftmeyer

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    #9
    Let's hope they operate independently and Logitech doesn't touch their professional audio mics and more. Otherwise, I've got to find another brand of XLR condensor mics for recording.
     
  10. tallscot macrumors regular

    tallscot

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    #10
    Buy all your competitors so you can set your own prices versus the market.
     
  11. TheYellowAudi macrumors member

    TheYellowAudi

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    --- Post Merged, Jul 31, 2018 ---
    Dear Logitech,
    Don't eff up Blue Mics like you did Ultimate Ears by diluting quality for mass market appeal. but I know you will.
     
  12. az431 macrumors 65816

    az431

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    #12
    What is the connection between paying cash and tax avoidance? The tax consequence is the same whether the deal is financed with debt, equity, or cash.
     
  13. minivini macrumors newbie

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    #13
    Dear lord they borked UE. They dropped to mediocre mid grade quality with barrel scraping customer service. I couldn’t imagine replacing my pre Logitech UE triple.fi with the current iteration. With Logitech’s dismal customer service, that would be too expensive a gamble. I’ll never buy another Logitech product unless there simply is no other option. It’s a shame, as Blue definitely made some high quality stuff.
     
  14. jimac macrumors newbie

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    #14
    Logitech worked with Apple to produce the Logitech Slim Combo keyboard for the iPad Pro smart connector before it was announced. So hopefully Logitech will work with Blue to make mikes and headphones with a USB-C connector for current MacBooks! Better yet, make USB-C headSETS (both headphone and a good boom microphone) for dictation and other uses like language study. Maybe headsets aren't appropriate for recording studios but there sure are a lot of telemarketers that buy hundreds of them (I just got an unwelcome call from one of them). The calling centers might just appreciate Blue's high quality and comfort.

    And maybe Logitech can make a deal with Apple to use Apple's W1 wireless chip in Blue headphones and headsets, for great long-range bluetooth. I've been using Logitech products for a long time -- long ago I even bought a programming language from them. And I also use several of Blue's microphones which are all excellent. I think that Blue will only get better with Logitech's investment.
     
  15. Superhai macrumors 6502

    Superhai

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    #15
    The issue is rather when Logitech designers discovered the “less is more”-mantra, they reconned it must mean less quality for a premium.
     
  16. minivini macrumors newbie

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    #16
    A cash deal means they paid traditionally, as opposed to a stock trade or takeover. “Cash” deals usually give the buyer more leverage when looking at the debts owed.
    --- Post Merged, Jul 31, 2018 ---
    They did the opposite to Ultimate Ears.
     
  17. AxiomaticRubric macrumors 6502

    AxiomaticRubric

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    #17
    Aaaaand the quality of Blue microphones suddenly takes a nosedive..... off a cliff. :eek:
     
  18. kohlson macrumors 68000

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    #18
    IIRC, that is their founding business model. They took advantage of Eastern European engineering and manufacturing expertise to create pretty good mics for pretty good prices. I bought a Snowball 10+ years ago. Still have it and it still works.
     
  19. Jupeman macrumors member

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    #19
    I just bought my second Baby Bottle mic today. In before the change, lol.
     
  20. pjfanelli macrumors member

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    #20
    No, they are not all the same. Debt allows for interest deductions for the buyer, and equity allows for the seller to defer tax payments on capital gains.
     
  21. teknikal90 macrumors 68040

    teknikal90

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    #21
    ive stuck with Rode. the K2 is actually really good
     
  22. mdriftmeyer macrumors 68030

    mdriftmeyer

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    #22
    I really love the Baby Bottle SL and looking to get a second, but I will keep my eye open.
     

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