By Rayan Singh (University of St. Gallen), Peter Tang (University of Michigan, Ross School of Business), Alexander Guenthner (Vienna University), Nina Tagliabue (UC Berkeley), and Alex Messick (UCLA)
The acquisition would give Apple a foothold in the fast-growing home entertainment industry, beyond their arguably unsuccessful smart-home product, the Apple HomePod.
In a similar manner to Apple’s $3 billion acquisition of Beats in 2014, a deal to buy Sonos would give the company immediate control of a coveted luxury brand in a lucrative industry. This would pave the way for Apple-branded smart-home products to be rolled out in the future, mirroring the rollout of AirPods after the Beats acquisition.
However, the deal could jeopardize Sonos’ existing partnerships with Apple competitors Amazon and Google and hurt sales in the short term due to the overlap of Sonos products with the HomePod.
This report was supported by Sealk's AI-powered deal sourcing technology.
Read our full report below. You can download the PDF here.
