Might Cupertino Save Struggling Sonos? Hypothesis About Apple Bid Abounds Might Cupertino Save Struggling Sonos? Hypothesis About Apple Bid Abounds – Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN)

Sonos Inc. SONO is grappling with probably the most extreme disaster in its historical past within the aftermath of a catastrophic software program rollout final 12 months. Bloomberg columnist Mark Gurman says that a number of tech giants might doubtlessly save the digital speaker firm, with most hypothesis centering on a doable acquisition by Apple Inc. AAPL.

What Occurred: In his newest Energy On publication, Gurman writes that Sonos launched a revamped app final Could that was supposed to refresh the Sonos expertise and pave the best way for brand new merchandise. Nonetheless, the app was riddled with bugs and lacking key options, resulting in important consumer dissatisfaction and tarnishing the model’s picture.

Six months put up the app’s launch, the corporate bid farewell to CEO Patrick Spence and its chief product officer. Tom Conrad, Pandora’s co-creator and a former govt at Snap Inc., has stepped in because the interim CEO.

With Sonos’ market valuation plummeting to roughly $1.7 billion from over $5 billion, the board is considering whether or not promoting the corporate is likely to be a possible resolution. Apple, given its related emphasis on premium design and audio know-how, is seen as a possible purchaser.

Different doable patrons embody:

• Amazon.com Inc. AMZN, which Gurman says “looks like probably the most pure match,”
• Samsung Electronics Co. (KRX: 005930), a doable “wild card,”
• Roku Inc. ROKU, although it “would in all probability face antitrust issues,” and
• Spotify Expertise SA SPOT, which “has lengthy needed to get into {hardware} however struggled to make it occur.”

Regardless of the rumors, many inside Sonos are of the opinion that Conrad might change into the everlasting CEO if he’s open to accepting the function.

Why It Issues: The turmoil at Sonos started with the departure of CEO Patrick Spence. The corporate’s shares took a success following the announcement of the CEO transition.

The following software program debacle additional eroded the corporate’s market worth, resulting in the present hypothesis a few potential sale.

The result of this disaster might considerably affect the way forward for Sonos and its stakeholders.