Rumored: Corsair will be aqcuired by private equity firm EagleTree Capital.

[kingkang]

So Reuters is saying that EagleTree Capital is in advanced discussions to acquire Corsair Components for more than 500 million dollars. Neither party's are willing to comment on this.

 

Quote

The potential deal would come at a time that the video game industry has seen a boost worldwide from the interest in eSports, video game competitions played in front of spectators online or even in sports arenas. U.S. consumers spent $30.4 billion on video games and accessories last year, a small increase from the year earlier, according to research firm NPD Group.

Reuters is assuming that Corsair is so interesting because of the growing game market. I think that is a right assumption. 

 

Opinion:

 

I have mixed feelings about this ( and to make clear this is not a confirmation of the sell). Corsair is led by the founder. This guy started with nothing and made the company big because of his passion. In my eyes this is also shown in their product and on how they listen to the community. But in order to grow they have to make acquisitions. This can be done by a private equity firm.

 

A private equity wants profit, a lot of profit. They just want money and they don't care about branding most of the time. Sometimes they do because of the extra profit it brings with it when you try to sell the company. So in the end, Corsair will be known for gaming gear, but will it be know in a more positive or negative way?

 

So I have a biased opinion, what do you guys think about it.

source: https://www.reuters.com/article/us-corsair-lbo-idUSKBN19Y1WE

[Zando_]

Give me $500 million, and I'll buy them and make them use tempered glass on all the mid to high end cases. 

[Jade]

Hopefully their products stay similar/gain in quality rather than lose some after the acquisition, if it does happen. No comments on EagleTree, though.

[iRileyx]

48 minutes ago, Zando Bob said:

Give me $500 million, and I'll buy them and make them use tempered glass on all the mid to high end cases. 

 

Why not low end cases? 

Gotta bring tempered glass to the masses

 

[ignaloidas]

When Mojang was bought for $2.5 billion that sum looks small

[NumLock21]

Eagle Tree Capital?!

Sound like some place you would go to for investment crap.

 

[Zando_]

2 minutes ago, RKRiley said:

 

Why not low end cases? 

Gotta bring tempered glass to the masses

 

But then they cost too much.... 

[NumLock21]

I think, this is them

http://eagletree.com/

[Guest]

15 minutes ago, NumLock21 said:

Eagle Tree Capital?!

Sound like some place you would go to for investment crap.

 

probably because it is an investment company. a small one tho, and i believe (not sure) corsair will be their biggest investment..

[tlink]

1 hour ago, ignaloidas said:

When Mojang was bought for $2.5 billion that sum looks small

the minecraft brand is incredibly valuable, you can influence basically 90% of the kids next gen consumers directly via it.

[Syntaxvgm]

6 hours ago, Jade said:

Hopefully their products stay similar/gain in quality rather than lose some after the acquisition, if it does happen. No comments on EagleTree, though.

I think you have this wrong- crap quality and great customer service is the corsair brand.

[Jade]

2 hours ago, Syntaxvgm said:

I think you have this wrong- crap quality and great customer service is the corsair brand.

Their RAM and cases have been exclusively good to me; really the only stuff I care about. Keyboards are somewhat decent other than the nonstandard layout. Their AIOs aren't particularly good or bad, in my experience, either... but I will concede that the fans and headphones suck.

[Belgarathian]

9 hours ago, kingkang said:

So Reuters is saying that EagleTree Capital is in advanced discussions to acquire Corsair Components for more than 500 million dollars. Neither party's are willing to comment on this.

 

Reuters is assuming that Corsair is so interesting because of the growing game market. I think that is a right assumption. 

 

Opinion:

 

I have mixed feelings about this ( and to make clear this is not a confirmation of the sell). Corsair is led by the founder. This guy started with nothing and made the company big because of his passion. In my eyes this is also shown in their product and on how they listen to the community. But in order to grow they have to make acquisitions. This can be done by a private equity firm.

 

A private equity wants profit, a lot of profit. They just want money and they don't care about branding most of the time. Sometimes they do because of the extra profit it brings with it when you try to sell the company. So in the end, Corsair will be known for gaming gear, but will it be know in a more positive or negative way?

 

So I have a biased opinion, what do you guys think about it.

source: https://www.reuters.com/article/us-corsair-lbo-idUSKBN19Y1WE

You can get profit in one of four ways - 

• Purchase the company for less than the market value of the assets, and fire sale. 
• Continue to run the company as-is with micro improvements
• Continue to run company, integrate supply chain and procurement with other organisations for operation efficiency gains. 
• Build company to IPO 

 

They wouldn't be buying the company if they didn't think they could get more money out of it, but it doesn't necessarily mean that they will increase the price or reduce the quality. 

[Syntaxvgm]

2 hours ago, Jade said:

Their RAM and cases have been exclusively good to me; really the only stuff I care about. Keyboards are somewhat decent other than the nonstandard layout. Their AIOs aren't particularly good or bad, in my experience, either... but I will concede that the fans and headphones suck.

well my experience is the opposite. I've had multiple instances of bad memory from them when other people bought it for builds (I only have bought their memory once, normally gskill or something is cheaper), which is really odd because I'm pretty sure these days RAM is rarely bad. In those cases they were DOA though, not going bad after a while, I highly doubt you have to worry about the memory going bad, I'm pretty sure it's pretty easy to tell you got a dead stick, I've never gotten ones that were finicky, just plain dead.

I've owned multiple cases from them, terrible quality. I've had a couple k70s and they seem pretty solid. (still managed to break one, not the keyboard's fault) In all cases they had excellent customer service, ie sent me case replacement parts, like a drive sled breaks and they'll send the whole cage. 

[Antistatic12]

I will be interested to see what Luke and Linus have to say about this on the WAN show.
Logitech buying Asrto and now we hear about this. Could we see some of the larger companies buy up the smaller ones to remove competition?
If Razer makes a move soon after there IPO announcement it wouldn't surprise me. Razer being backed by Intel, has potentially deep pockets to buy.
 

[oporto92]

I think its a bad idea. Will make quality lower. Similar with westone audio. Their quality were great, most of their products were USA made but then they sold to private and now almost everything is made en china. Won't be any different with corsair. Please don't sell, it ain't about money at this stage, owner at this point has a lot of it already, selling will only compromise the company, inferior quality, more mainstream and more sales. Perhaps better for profit not good for the consumer... I'm just repeating myself but it really is that simple.