The recent troubles with Sonos’ app update brought a tidal wave of criticisms with which the audio speaker maker could not recover from, introducing a major shakeup that saw its former CEO, Patrick Spence, being forced to step down. With the company’s valuation now reduced to $1.7 billion, down from $5 billion during the pandemic, is Sonos in a position where it has little choice but to be acquired?
There is always a possibility, and for a long time, Apple was reported to be the most likely entity to absorb its assets. However, according to the latest report, that is not the case. The Cupertino firm also has its pieces in the right places, but there are others who could benefit from acquiring Sonos.
Amazon, Samsung, and Spotify are the likely candidates to acquire Sonos, with Apple already possessing the necessary resources to jumpstart its audio business
With its Beats acquisition, Apple not only continued to churn out wireless audio products that have taken the world by storm but launched smart speakers that have allowed the company to enter a brand new product category. Sure, these devices could have witnessed better sales, but that is no reason to acquire Sonos.
After all, Bloomberg’s Mark Gurman has mentioned in the latest ‘Power On’ newsletter that the California-based giant has all the resources it could ever want ranging from hardware, software, manufacturing and others. Now, all that is required is ensuring that these pieces move in unison and ensure that Apple has a successful run in this space.
“If Apple really wanted to build out its home audio business, it already has the hardware, software, content and manufacturing chops internally. It’s just about wanting to get things done properly — something that Apple is already working on. Later this year, it will launch its own home hub and a new HomePod mini.”
So if not Apple then who? Well, the report mentions that even Meta, Google and Microsoft will unlikely want to acquire Sonos, but Amazon, Samsung and Spotify might be possible candidates. Amazon appears to be the most fitting as it is reported that the e-commerce giant will reportedly revamp its device portfolio, and Sonos’ acquisition could serve as the backbone to introduce new Echo products down the road.
However, Amazon might be patient in its moves, as analysts project that Sonos will report a 15 percent reduction in its revenue during the holiday quarter. The ‘broken’ app update may have tarnished the company’s reputation beyond repair, and Amazon could wait for an excellent opportunity to acquire the firm at a lower valuation.
News Source: Bloomberg
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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