Logitech Acquires Blue Microphones for $117 Million in Cash

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Apr 12, 2001
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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.


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.
Logitech's acquisition of Blue Microphones will accelerate our entry into a growing market, and offers another way for us to help bring people's passions (from music to blogging) to life. Joining with Blue is an adjacent opportunity for us - a new way to grow - with additional synergies related to our existing gaming, PC webcam and audio categories.
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".
All of us here at Blue will keep creating cool stuff for professional musicians, gamers, podcasters, YouTubers, and streamers; Logitech will help us conquer the world. It's a great partnership full of possibilities.
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
 

Onexy

macrumors regular
Sep 14, 2012
160
242
Is there a single reason for a cash deal except avoiding taxes?
 

Isidore

macrumors member
Feb 13, 2004
50
33
London
Is there a single reason for a cash deal except avoiding taxes?
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.
 

TheYellowAudi

macrumors member



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.


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
[doublepost=1533043022][/doublepost]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.
 

minivini

macrumors member
Oct 4, 2011
47
29
[doublepost=1533043022][/doublepost]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.
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.
 
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jimac

macrumors newbie
Dec 18, 2005
29
23
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.
 

minivini

macrumors member
Oct 4, 2011
47
29
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.
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.
[doublepost=1533054091][/doublepost]
I think that Blue will only get better with Logitech's investment.
They did the opposite to Ultimate Ears.
 
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kohlson

macrumors 68020
Apr 23, 2010
2,312
685
“less is more”-mantra
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.
 

pjfanelli

macrumors member
Sep 21, 2010
35
4
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.
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.
 
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