News Flash
- Thread starter ggrantly
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Yep. I’m skeptical, but am taking a wait-and-see position because that’s really the only logical position.
On the plus side, they do get the backing of a much deeper resource for parts and financing, and they join the pool with some pretty solid, high-end names like SSL and Calrec and DigiCo. Of course, any time a larger corporation acquires a mom-and-pop brand, it could dilute or otherwise weaken the brand, but only time will tell.
If Sound Devices keep operating from the same Wisconsin offices with the same staff, and I can still get an actual Sound Devices person on the phone for assistance, I think we’ll be okay.
On the plus side, they do get the backing of a much deeper resource for parts and financing, and they join the pool with some pretty solid, high-end names like SSL and Calrec and DigiCo. Of course, any time a larger corporation acquires a mom-and-pop brand, it could dilute or otherwise weaken the brand, but only time will tell.
If Sound Devices keep operating from the same Wisconsin offices with the same staff, and I can still get an actual Sound Devices person on the phone for assistance, I think we’ll be okay.
Jim Feeley
Veteran
Here's the official announcement: Sound Devices Joins Audiotonix Group
My sense is that this could be really good. Especially for, Alex says, parts and financing. I remember years ago someone at SD saying that they were having trouble getting a particular part (in the 7-series days) because they were only ordering 1000 at a time rather than 10,000 (my numbers might be wrong, but the ratio conveys the gist). If SD doesn't need to spend time on that sort of thing, they can spend more time developing products and supporting gear (or more darkly, just returning more profits to their owners) And as SD continues to reach into music-industry retailers such as Sweetwater rather than "just" their original location-sound dealers such as Trew, Gotham, and Pinknoise, being a part of Audiotronix could help.
Here's something from the press release attributed to Matt Anderson of SD: "In a way, it will be ‘business as usual’ at Sound Devices, as we will carry on doing the same thing we’ve been doing for the past 23 years: focusing intensely on making the best sound products we can. However, the Audiotonix group brings us more strength in terms of access to capital, depth in manufacturing, knowledge in engineering, sourcing of parts, and expanding our sales and marketing expertise."
And Audiotronix recently bought Austrian Audio [That's wrong... Audiotronix didn't buy Austrian, but they do distribute them in the US. The rest of this paragraph is now less relevant -- jim]. After AKG got bought by Harman, they dropped lots/all of AKG's Austrian employees. So those people started Austrian Audio. Their mics and headphones are supposed to be cool. And AFAIK, the original engineering and other core team members are still running that. I think they're now smaller than SD, I think, but it's a good sign.
And Allen & Heath had their ill-fated reach into headphones a few years ago. I don't know if that was before or after Audiotronix bought them, but it's an experience in the company that warns about stretching brands too far. That too will be a good lesson for SD.
Also the way Audiotronix's SSL has reached into the home/project studio is pretty cool, imo. And Allen & Heath has experience with the low and midrange boards (I regularly work on their Qu-series mixers and like them)... So maybe we'll see some more-affordable control surfaces for SD's 8-series and MixPre recorders. That'd be cool.
Also, not much I can do about it but wait and see. And hope for the best.
My sense is that this could be really good. Especially for, Alex says, parts and financing. I remember years ago someone at SD saying that they were having trouble getting a particular part (in the 7-series days) because they were only ordering 1000 at a time rather than 10,000 (my numbers might be wrong, but the ratio conveys the gist). If SD doesn't need to spend time on that sort of thing, they can spend more time developing products and supporting gear (or more darkly, just returning more profits to their owners) And as SD continues to reach into music-industry retailers such as Sweetwater rather than "just" their original location-sound dealers such as Trew, Gotham, and Pinknoise, being a part of Audiotronix could help.
Here's something from the press release attributed to Matt Anderson of SD: "In a way, it will be ‘business as usual’ at Sound Devices, as we will carry on doing the same thing we’ve been doing for the past 23 years: focusing intensely on making the best sound products we can. However, the Audiotonix group brings us more strength in terms of access to capital, depth in manufacturing, knowledge in engineering, sourcing of parts, and expanding our sales and marketing expertise."
And Audiotronix recently bought Austrian Audio [That's wrong... Audiotronix didn't buy Austrian, but they do distribute them in the US. The rest of this paragraph is now less relevant -- jim]. After AKG got bought by Harman, they dropped lots/all of AKG's Austrian employees. So those people started Austrian Audio. Their mics and headphones are supposed to be cool. And AFAIK, the original engineering and other core team members are still running that. I think they're now smaller than SD, I think, but it's a good sign.
And Allen & Heath had their ill-fated reach into headphones a few years ago. I don't know if that was before or after Audiotronix bought them, but it's an experience in the company that warns about stretching brands too far. That too will be a good lesson for SD.
Also the way Audiotronix's SSL has reached into the home/project studio is pretty cool, imo. And Allen & Heath has experience with the low and midrange boards (I regularly work on their Qu-series mixers and like them)... So maybe we'll see some more-affordable control surfaces for SD's 8-series and MixPre recorders. That'd be cool.
Also, not much I can do about it but wait and see. And hope for the best.
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Rick R
Veteran
I assume much of the same staff will be in place (at least for now), but Jon T is 'retiring '. SD news release: https://www.sounddevices.com/sound-devices-joins-audiotonix-group/
That was my guess. The two founders have been going at it for 23 years and want to cash out. I've been through this several times. It is a nightmare for the first year as the new company 'experts' drop in on the new acquisition and decide how to restructure management, who's going to be let go (why have redundant accounting, HR, purchasing, manufacturing, sales,....). Then there is the IP exchange which can be terrible if the new owner wants to push technology onto the acquisition. Yes, it can be positive, but many times it is not. It's all very disruptive even in the best of circumstances. In the worst of circumstances, it can be stifling and ruinous.
Honestly, at some point, I do believe that selling out while the company value is healthy is something any independent business owner considers. I mean, that’s a great retirement fund, right?
I’m sure the current business climate had something to do with it as well. Global supply chain issues are making it harder for small businesses like this to survive, since they just don’t command the purchasing power to be at the top of the list when sparse components do become available.
Not so sure. The MixPre II series already have several low-cost control surfaces, third-party, that work well. I can’t imagine SD putting R&D into cheap control surfaces for their low-cost mixer/recorders. As for the 8-series, I use the Icon Platform M+, which is not too expensive at about $600 with the external display bridge, and I love it. Yeah, it’s also third-party, but it works and is much less expensive than the CL-16. No configuration needed: just connect and power up, and the mixer automatically maps the Platform.
I’m hoping that this does help in securing semiconductors during the global shortage. SD suspended production of their 833 and MixPre-3 II as they just can’t get enough to keep up. If they can get the 833 back into production, it’ll be a good thing.
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NorBro
Major Contributor
Absolutely...I would have done it a few years ago when they seemed like they were doing really well and were on top as a brand consideration (even if not exactly everywhere and for everyone).
Jim Feeley
Veteran
SD wouldn't necessarily have to build something ground up. They could perhaps with their sibling company Allen & Heath and do some software coordination so SD recorders work extra well with one or two A&H mixer.
No idea why they're selling now, but looking at all the acquisitions happening in lots of industries, it appears there's a lot of money looking for a home... And I still think having more clout with parts supplies and big retailers must have some appeal. And perhaps Matt really does want more time to work with the rest of the engineers at SD to make cool new stuff.
My guess, Matt will be gone in 6 - 12 months. In deals like this, they want some continuity, so some of the brain trust sticks around to pass the baton. He'd get an additional chunk of money for sticking around.
These guys have been their own bosses for 23 years. It's hard to follow that up as a subordinate, reporting to upper management on how well you are running your company. I don't see it. They move on and start something else or make cheese and go to Packer games.
These guys have been their own bosses for 23 years. It's hard to follow that up as a subordinate, reporting to upper management on how well you are running your company. I don't see it. They move on and start something else or make cheese and go to Packer games.