Bang & Olufsen open to takeover talks after poor sales figures

If a takeover candidate presents itself, Bang & Olufsen will not reject it, according to the chairman of the Danish company. According to a spokesperson, B&O is not actively displaying itself despite financial headwinds.

Alarm bells are ringing at Bang & Olufsen after the company has already had to lower its revenue expectations three times, company chairman Ole Andersen reports to Reuters. His company would ‘listen’ to a takeover proposal, he says, emphasizing that this must be preceded by a discussion with shareholders.

In 2016, B&O rejected a takeover by Hong Kong-based Sparkle Roll Group. That party owns just under fifteen percent of the shares, making it the largest shareholder.

Bang & Olufsen is mainly affected by declining TV sales. The company faces fierce competition in the television market. Prices for OLED televisions are falling, making it more difficult for B&O to market its high-end models, such as the BeoVision Eclipse TV-OLED. The Danish company is also unable to capitalize on the popularity of headsets and smart speakers with new products.

B&O’s sales for its last fiscal quarter fell 26 percent and annual sales fell 14 percent, the annual figures released in July showed. The company initially expected a 10 percent increase in sales. For its current fiscal year, the company expects a small increase in sales.