HARMAN Acquires Roon

This news must put something of a question mark over Roon. If not in the short term but medium to long.
 
Simply absurd.

Let's hope the wood is FSC certified. At least, they didn't use ivory.
 
Simply absurd.

What'll be more absurd is if some thingamabobs from Harman/Samsung become the only supported server platforms for Roon in the future, and there's some kind of cloud service one is required to have active for anything to work at all.
 
What'll be more absurd is if some thingamabobs from Harman/Samsung become the only supported server platforms for Roon in the future, and there's some kind of cloud service one is required to have active for anything to work at all.
Despite holding corporates in disdain, I doubt they'd make Roon so dependent on their hardware (at rip-off prices, too), even though they probably would like to.
 
Despite holding corporates in disdain, I doubt they'd make Roon so dependent on their hardware (at rip-off prices, too), even though they probably would like to.
Hard to predict. They own the product, service, and engineering lock, stock, and barrel. Which they probably got for a song. And they can afford to play the long game, whatever their long game is.

Clearly something about Roon's business model/execution was seriously not working, else they would not have sold out. But what long-term changes Harman will make to monetize their acquisition has yet to be revealed.
 
Last edited:
Clearly something about Roon's business model/execution was seriously not working, else they would not have sold out. But what long-term changes Harman will make to monetize their acquisition has yet to be revealed.

I'm fairly certain that is not true. Roon was a startup. Like most modern tech startups, founders plan for an exit strategy from Day 1. Since Roon was unlikely to ever go public, an acquisition was always the plan. None of us know what Harman paid, but there is no reason to think that they got Roon cheaply. Roon has over 300K paying users and is growing.
 
I'm fairly certain that is not true. Roon was a startup. Like most modern tech startups, founders plan for an exit strategy from Day 1. Since Roon was unlikely to ever go public, an acquisition was always the plan. None of us know what Harman paid, but there is no reason to think that they got Roon cheaply. Roon has over 300K paying users and is growing.
Can you tell us where you get the 300k users figure from? The Roon marketing still says “over 100k”.IMG_6835.png
 
Can you tell us where you get the 300k users figure from? The Roon marketing still says “over 100k”.

Per one of the founders, they were close to 300K in Sept 2022.

 
Per one of the founders, they were close to 300K in Sept 2022.

Interesting. One then wonders why the marketing claim isn’t higher?
 
Agree with @BrooklynNick - perfectly likely Roon's founders wanted the payday of a buy out, and Harman saw compatible technology/market for their business. The whole "all big company buyouts of smaller audio outfits is bad and suspicious" attitude often expressed online strikes me as based on a lack of knowledge about how the business world works. For example, Qobuz is often lionized on this forum as a "music purist' company - but it was bought out some years ago by an entity that is part of a large business conglomerate (Xandrie SA) - and Xandrie makes no secret about their plans to buy up other audio outfits and technologies - just like Harman does: see xandrie.com "about us".
 
Even if 300k subscribers, not a big business and fairly low revenue.
 
Even if 300k subscribers, not a big business and fairly low revenue.
I'm pretty sure that the majority of Roon users are monthly subscribers, but let's assume that half are and that all monthly subscribers pay annually (best price), and that Roon gets no revenue from its other products, certifications, or partners. Just to keep things simple and not be too optimistic.

150,000 x $149 = 22.4 million revenue annually, worst case. Compared to Harman (~11 billion revenue), Roon is a tiny company. Compared to others in the audio industry that cater to audiophiles, I would guess that makes them one of the big boys. More interesting to me would be to know if they were profitable, but that info is not publicly available AFAICT.

 
I'm pretty sure that the majority of Roon users are monthly subscribers, but let's assume that half are and that all monthly subscribers pay annually (best price), and that Roon gets no revenue from its other products, certifications, or partners. Just to keep things simple and not be too optimistic.

150,000 x $149 = 22.4 million revenue annually, worst case. Compared to Harman (~11 billion revenue), Roon is a tiny company. Compared to others in the audio industry that cater to audiophiles, I would guess that makes them one of the big boys. More interesting to me would be to know if they were profitable, but that info is not publicly available AFAICT.


Right. That was my point - tiny revenue.
 
Right. That was my point - tiny revenue.

My low-ball back of the envelope revenue number makes them larger than more than 99% of American companies. But sure, they are not a billion dollar behemoth obviously. They probably sold for well over 100 million; maybe a lot more. I would bet the founders and early employees did quite well.
 
 
Well, I have to hand it to them that they're saying the right things. And getting rid of the miserable Internet connectivity requirement is a move in the right direction.
 
Back
Top