Harman Kardon, a brand synonymous with premium audio equipment, has been a household name for over 60 years. But have you ever wondered who owns this legendary brand? In this article, we’ll delve into the ownership history of Harman Kardon, exploring the twists and turns that have shaped the company into what it is today.
A Brief History of Harman Kardon
Before we dive into the ownership aspect, let’s take a brief look at the rich history of Harman Kardon. Founded in 1953 by Sidney Harman and Bernard Kardon, the company started as a small amplifier manufacturer in New York City. The duo’s passion for innovative design and commitment to producing high-quality audio products quickly paid off, with Harman Kardon becoming a go-to brand for audiophiles and music enthusiasts alike.
In the 1960s and 1970s, Harman Kardon continued to innovate, introducing pioneering products like the first stereo receiver, the Festival TA230, and the world’s first compact AV receiver, the AVR 300. These milestones cemented the brand’s reputation as a leader in the audio industry.
The Road to Samsung: A Timeline of Ownership Changes
Fast-forward to the 1990s, when Harman Kardon began to change hands. Here’s a brief timeline of the major ownership changes:
1990s: The Harman Era
In 1994, Sidney Harman took the company public, listing it on the New York Stock Exchange (NYSE). During this period, Harman Kardon continued to expand its product lines, incorporating new technologies like DVD players and home theater systems.
2000s: The Private Equity Takeover
In 2007, Kohlberg Kravis Roberts & Co. (KKR), a private equity firm, acquired Harman Kardon for $8 billion. This marked a significant shift in the company’s ownership structure, as KKR aimed to streamline operations and drive growth through strategic investments.
2010s: The Samsung Acquisition
On November 14, 2016, Samsung Electronics announced its plan to acquire Harman International Industries, Inc., the parent company of Harman Kardon, for approximately $8 billion. The deal marked Samsung’s largest acquisition to date, further solidifying its position in the audio and automotive industries.
Why Samsung Acquired Harman Kardon
So, why did Samsung, a tech giant primarily known for its smartphones and semiconductors, acquire a premium audio brand like Harman Kardon? There are several reasons:
Expanding into the Automotive Industry
Harman Kardon’s strong presence in the automotive industry, with partnerships with top manufacturers like BMW, Mercedes-Benz, and Audi, presented an attractive opportunity for Samsung. By acquiring Harman Kardon, Samsung gained access to the growing automotive infotainment market, enabling it to develop and supply advanced audio and infotainment systems to leading car manufacturers.
Enhancing Audio Capabilities
The acquisition allowed Samsung to leverage Harman Kardon’s expertise in audio technology, enhancing its own product offerings across various categories, including smartphones, TVs, and wearable devices. This integration enabled Samsung to provide more comprehensive audio solutions to its customers.
Strengthening IoT Capabilities
Harman Kardon’s internet of things (IoT) expertise, particularly in smart home and audio applications, complemented Samsung’s existing IoT initiatives. The acquisition enabled Samsung to expand its IoT capabilities, creating new opportunities for growth in the connected devices market.
What Does this Mean for Harman Kardon?
The acquisition by Samsung has had a significant impact on Harman Kardon’s operations and strategy:
Increased Resources and Investment
As a Samsung subsidiary, Harman Kardon gained access to increased resources, including research and development funding, manufacturing capabilities, and global distribution networks. This has enabled the brand to accelerate innovation, improve product quality, and expand its reach into new markets.
Integration with Samsung’s Ecosystem
Harman Kardon’s products are now seamlessly integrated into Samsung’s ecosystem, providing users with a more comprehensive and connected experience. This integration has opened up new opportunities for cross-promotion and co-branding, further strengthening the Harman Kardon brand.
Enhanced Focus on Innovation
With Samsung’s backing, Harman Kardon has intensified its focus on innovation, investing in research and development to create cutting-edge audio technologies and products. This has enabled the brand to maintain its position as a leader in the premium audio market.
The Future of Harman Kardon
As a subsidiary of Samsung, Harman Kardon is well-positioned to capitalize on emerging trends in the audio and automotive industries. With its rich heritage, commitment to innovation, and access to Samsung’s resources, Harman Kardon is poised to continue delivering exceptional audio experiences to customers worldwide.
In conclusion, the ownership history of Harman Kardon is a testament to the brand’s resilience, adaptability, and commitment to innovation. From its humble beginnings to its current status as a Samsung subsidiary, Harman Kardon remains a byword for premium audio excellence, continuing to push the boundaries of sound quality and innovation.
Who founded Harman Kardon?
Harman Kardon was founded by Sidney Harman and Bernard Kardon in 1953. The two entrepreneurs had a vision to create high-quality audio products that would revolutionize the music industry. They started the company in a small factory in Stamford, Connecticut, and began producing amplifiers, tuners, and other audio components.
Today, Harman Kardon is a renowned brand in the audio industry, known for its sleek designs, innovative technology, and exceptional sound quality. Despite changing ownership over the years, the company has remained committed to its founders’ vision of delivering exceptional audio experiences to music lovers around the world.
What was the first product launched by Harman Kardon?
The first product launched by Harman Kardon was the Festival D1000, a high-fidelity amplifier that quickly gained popularity among audiophiles. This innovative product was designed to provide crystal-clear sound and exceptional power, setting a new standard for the audio industry.
The Festival D1000 was a game-changer in the audio world, offering a level of sound quality that was unprecedented at the time. Its success paved the way for Harman Kardon’s future innovations, including the introduction of the first stereo receiver in 1958, which further solidified the company’s reputation as a leader in the audio industry.
Who acquired Harman Kardon in 2017?
In 2017, Samsung Electronics acquired Harman International Industries, the parent company of Harman Kardon, in a deal worth $8 billion. This acquisition marked a significant milestone in the company’s history, providing Harman Kardon with access to Samsung’s vast resources and expertise in the technology sector.
The acquisition has enabled Harman Kardon to accelerate its innovation and expansion into new markets, including the automotive and Internet of Things (IoT) industries. Under Samsung’s ownership, Harman Kardon has continued to push the boundaries of audio technology, developing new products and solutions that meet the evolving needs of consumers.
What is Harman Kardon’s current product lineup?
Harman Kardon’s current product lineup includes a wide range of audio products, from high-end home theaters and soundbars to portable speakers and wireless headphones. The company continues to innovate, releasing new products that incorporate the latest technologies, such as artificial intelligence, voice assistants, and wireless connectivity.
From the iconic Harman Kardon Citation series to the sleek and compact Esquire series, the company’s products are designed to deliver exceptional sound quality, durability, and style. Whether you’re a music enthusiast, a gamer, or simply someone who appreciates great sound, Harman Kardon has a product that’s sure to meet your needs.
Is Harman Kardon still an American company?
Although Harman Kardon was founded in the United States and is still headquartered in Stamford, Connecticut, the company is currently owned by Samsung Electronics, a South Korean multinational conglomerate. This has led to some changes in the company’s operations and management structure.
However, Harman Kardon remains committed to its American heritage and continues to maintain a strong presence in the United States. The company’s products are still designed and engineered in the US, and it continues to partner with American suppliers and manufacturers to deliver high-quality products to customers around the world.
What is Harman Kardon’s presence in the automotive industry?
Harman Kardon has a significant presence in the automotive industry, providing premium audio systems to many of the world’s leading car manufacturers, including Mercedes-Benz, BMW, and Ferrari. The company’s automotive audio systems are designed to provide an exceptional listening experience, with crystal-clear sound and precision engineering.
In addition to its work in the automotive industry, Harman Kardon is also a leading provider of connected car technologies, including infotainment systems, navigation, and telematics. The company’s innovations in this area are helping to shape the future of in-car entertainment and connectivity.
What is the future of Harman Kardon?
The future of Harman Kardon looks bright, with the company well-positioned to continue its leadership in the audio industry. Under Samsung’s ownership, Harman Kardon is poised to take advantage of emerging technologies, such as 5G, artificial intelligence, and the Internet of Things (IoT), to create new and innovative audio products and experiences.
As the company looks to the future, it remains committed to its core values of innovation, quality, and customer satisfaction. With its rich history, talented team, and cutting-edge technology, Harman Kardon is ready to take on the challenges of the future and continue to deliver exceptional audio experiences to music lovers around the world.