Logitech Buys Gaming Headset Company Astro for $85 Million

[Max_Settings]

Logitech is buying headset manufacturer Astro, for $85 Million in an all cash deal. No news on whether Logitech will keep the Astro brand or merge their products in with their own

https://www.cnet.com/news/logitech-buys-headset-maker-astro-gaming/

Quote

Logitech is one of the best-known brands of keyboards, mice, headphones and webcams, whether you're a gamer or not. 

Now, Logitech's carving a deeper niche in the gaming peripheral market -- by purchasing headset maker Astro Gaming for $85 million in an all-cash deal.

 

[Vargi]

see you on WAN show

[Guest]

See you soon.

[Max_Settings]

21 minutes ago, Vargi said:

see you on WAN show

I hope so that would be cool 

[TrigrH]

inb4 same story about how linus hated the astros he reviewed and that they weren't happy about that.

[f22luke]

5 hours ago, Max_Settings said:

Logitech is buying headset manufacturer Astro, for $85 Million in an all cash deal. No news on whether Logitech will keep the Astro brand or merge their products in with their own

https://www.cnet.com/news/logitech-buys-headset-maker-astro-gaming/

 

Maybe this means Astro will be the gaming brand and then logitech will be the good looking cousin.  I feel like lodgitech missed out on a larger market by making their headsets so ugly.

[BachChain]

1 hour ago, f22luke said:

Maybe this means Astro will be the gaming brand and then logitech will be the good looking cousin.  I feel like lodgitech missed out on a larger market by making their headsets so ugly.

I don't see why they needed to buy another company to do that.

[blu4]

Just now, BachChain said:

I don't see why they needed to buy another company to do that.

You can either:

 

Develop a product, market and sell it, OR buy another company that already did that. Saves a lot of money in the long run however the initial cost it high.

[Equlix]

2 hours ago, BachChain said:

I don't see why they needed to buy another company to do that.

astro is a more well known and respected brand among console users than logitech, especially in the COD and Halo circles. Along with the hardware they bought their way to being in the top 3 for console accessories. 

[Trixanity]

Isn't Astro the Beats of gaming headsets?

[NumLock21]

17 hours ago, Dutch-stoner said:

See you soon.

[Deletist_Jerk]

It only cost them $85 million, which is crazy. Logitech is now a huge player in console eSports scene.

 

I would've loved to have seen $85 million in all cash! How many handcuffed suitcases?

[ApolloFury]

8 hours ago, Trixanity said:

Isn't Astro the Beats of gaming headsets?

Well to be honest all gaming headsets are Beats-like, cheap construction, poor sound quality bundled with sound surround software to make it sound "better". The only decent gaming headsets are from HyperX Cloud series (rebranded Takstar Pro 80), Audio Technica (rebranded ATH-AD700/900X), Sennheiser (rebranded HD5xx?) and maybe some others, this is because they are just rebranded audiophile/studio headphones with a boom mic attached with some decoration, though it is much cheaper if you just get the originals and buy a mic separately.

 

What set "gaming headsets" and actual headphones apart is that these headphones can produce the illusion of surround sound on their own without software.

[Jito463]

5 hours ago, Deletist_Jerk said:

I would've loved to have seen $85 million in all cash! How many handcuffed suitcases?

It wasn't literal physical cash, it just means that they bought it outright.  No stock options or such, just a straight up purchase.

[Rune]

I would have thought astro was worth more than that....

[ionbasa]

First Saitek, now Astro. I feel like Logitech is beefing up their presence in console gaming and simulators. Logitech has been notorious with good build quality on their mice and keyboards. I don't see anything too wrong with this, just a good investment on Logitech's part. Logitech also has a lot more money help in R&D compared to just Astro. It's a win-win for both companies (imho).

[JohnnyCorporalTech]

On 12/07/2017 at 10:26 AM, Vargi said:

see you on WAN show

 

On 12/07/2017 at 10:47 AM, Max_Settings said:

I hope so that would be cool 

Rekt!! 

A repost made it on rather than your Topic  

[NumLock21]

Could be his topic was on the first page.

[Max_Settings]

Just now, NumLock21 said:

Could be his topic was on the first page.

I was hoping @LinusTech did a little more research than that to be sure he was giving proper credit

[TheGosuStandard]

Seems like logitech buys another company every year

[Vode]

Thank god. Maybe Astros quality can improve now...

[Bcat00]

Wow, i'm surprised logitech went with this deal. Their own headphones are decent for the price already, i don't get why they just didn't go with their own products and add a little more RND. Now they got even more overhead cost to handle and if they decide to absorb the Astro brand into their own and ditch the name, then it kinda become moot.

[maartendc]

10 hours ago, Bcat00 said:

Wow, i'm surprised logitech went with this deal. Their own headphones are decent for the price already, i don't get why they just didn't go with their own products and add a little more RND. Now they got even more overhead cost to handle and if they decide to absorb the Astro brand into their own and ditch the name, then it kinda become moot.

Aparently, according to Linus on the WAN show, they will keep the Astro brand name alive, the products will exist alongside Logitech products.

 

It makes sense from a business perspective if Astro has a good market share. It doesnt matter if their products are inferior to Logitech products. At least Astro can benefit from the Logitech research and know-how.

 

It is like how Procter&Gamble own 5+ different laundry detergent brands. They are all P&G, so they dont care which one you buy. It is just the illusion of choice. They market each one to a slightly different market (1 for white laundry, one for colors, one with a fresher scent, etc. etc.) Similarly Logitech can market the Astro brand to console gamers and e-sports, and the Logitech brand for PC gaming (for example).