Sonos has faced intense backlash after a problematic app update, which led to significant internal upheaval, including the resignation of its former CEO, Patrick Spence. The company’s valuation had shrunk from $5 billion amid the pandemic to just $1.7 billion, adding to speculation over whether Sonos could be sold. Although Apple had long been viewed as the most likely acquirer of Sonos, recent reports suggest the Cupertino hardware maker isn’t going to take such action.
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Apple Likely Out of the Running for Sonos Acquisition, Amazon a Potential Buyer
For its part, Apple already has a strong presence in the wireless audio sector since the company acquired Beats, and smart speakers have opened up a new product category for the company. Despite this, Bloomberg’s Mark Gurman noted the sheer resources that Apple — hardware, software, manufacturing, etc. — has at its disposal to attempt to take on the home audio market. What Apple needs now is to put all these elements together and make them click, and it’s already working on that.
Apple seems poised to pursue a new home hub and a revised HomePod mini in the coming months, which Gallery suggests will continue alongside Sonos as Apple pursues its home audio business internally rather than acquiring Sonos. But with Apple looking unlikely to enter the fray, other companies could become interested in Sonos. Meta, Google, and Microsoft would not be interested in pursuing an acquisition, but Amazon, Samsung, and Spotify may be able buyers.
Amazon appears to be the most likely candidate, especially with reports suggesting that the company plans to overhaul its device portfolio. An acquisition of Sonos could strengthen Amazon’s Echo product lineup in the future. However, Amazon may adopt a patient approach. Analysts predict a 15% decline in Sonos’ revenue during the holiday quarter, and the company’s reputation may have taken a hit. As a result, Amazon may wait for a more opportune time to acquire Sonos at a lower valuation.
FAQs
Will Apple acquire Sonos?
No, Apple is unlikely to acquire Sonos as it already has the necessary resources to succeed in the audio space.
Who might acquire Sonos instead of Apple?
Amazon, Samsung, or Spotify could potentially acquire Sonos, with Amazon being the most likely candidate.
