Sennheiser announced Tuesday that it is looking for a new partner to buy its consumer audio business, which consists of headphones and speakers.
The company is shifting its focus entirely to the professional audio field, including its Neumann microphone division and what Sennheiser calls business communications.
In a press release, Daniel Sennheiser, Co-CEO of Sennheiser, said the company wanted to increase visibility in the competitive headphone and speaker markets.
The company believes its products can be popular amid strong competitive pressures, but it needs an investor to achieve this.
In the press release: In order to be better able to exploit the potential in each of these markets, we are focusing our own resources on the three business areas in the professional section and are looking for a strong partner to invest in our consumers’ business, and talks with potential partners begin soon.
German magazine Handelsblatt recently published an interview with Daniel Sennheiser and Co-CEO Andreas Sennheiser.
In the interview, the brothers cited a number of possible reasons why Sennheiser is now exploring selling its consumer business, as the company has been delayed in entering the wireless headphones segment, which has become a popular segment for audio devices.
While Sennheiser appeared to have record sales in 2019 (393 million euros, accounting for 52 percent of its 2019 sales), it ended up slightly negatively after taxes and interest.
Headphone sales recently weren’t as good as expected, and (Daniel Sennheiser) over the summer said: The competitive pressure had increased dramatically, and profit margins at the time were under pressure.
The company has also cut 650 jobs worldwide, leaving it with about 2,800 employees currently.
Sennheiser’s press release makes it as if the company is interested in the partners to fund its audio activities to consumers, but is not opposed to selling it entirely.
The Sennheiser Brothers told Handelsblatt: All options are open, and it is important for us that all areas of work appear stronger after the reorganization, and we will be more willing to take advantage of our strengths with a strong partner by our side to invest in our consumer activities.