Apparently we’re behind in this surprising bit of news! That cool gaming headphone company we all know as Astro Gaming, was recently bought by that other cool headphone company, Skullcandy. Astro’s “stanimal” cleared up some speculation and rumors by confirming the acquisition in a brief blog post on the company site.
I am a bit interested in what this means for Astro? The blog post would suggest that nothing is going to change except for the rate of growth for Astro products. Are we going to see Astro Products in retail stores? If so, what products are they going to push? The price point for the A*Star Earbuds and A30s seem a bit better for retail chains such as Best Buy, versus say, the A40 headsets.
One of my biggest questions is in regards to Pro player sponsorships and what affect an acquisition like this means to Skullcandy? Skullcandy has a team of athletes that represent them in X-sports and by acquiring Astro, one has wonder if they may shift some focus on the Pro Gamers of the world? This seems like a prime opportunity for Skullcandy to shift into that market. Either way I am happy to see Astro benefit from this ordeal and I hope to see their continued success.
If you’re interested in the details of the acquisition, stick around after the jump.
“Skullcandy Inc. has acquired the assets of a maker of gaming headphones for $10.8 million, according to a securities filing that also revealed Skullcandy plunging into the red last year as the headphone seller’s costs soared.
The Park City, Utah-based company, which registered for an initial public offering in January and last month replaced its chief executive, said in a filing late Thursday that it purchased San Francisco-based Astro Gaming Inc. on April 22.
Astro Gaming was backed by investors including Triangle Peak Partners LP and Fayez Sarofim & Co.
Skullcandy also disclosed in the new filing that it generated a net loss of $9.7 million last year, compared with a $13.5 million profit the year prior. Though its revenue rose 35.7% to $160.6 million thanks to increased sales to large national retailers, a one-time charge for management incentive bonuses took out a $17.5 million chunk of its profit.
The company also boosted advertising and marketing by $5.2 million and spent $1 million on legal fees, further cutting into the company’s profits.
Last month, Skullcandy announced that its founder, Rick Alden, was stepping down as CEO–an unusual move for a company in registration for an IPO.
Bank of America Merrill Lynch and Morgan Stanley are underwriting the offering, through which the company plans to secure a Nasdaq Global Market listing under the symbol SKUL.
Skullcandy’s major investors include Goode Partners and Mercato Partners. Battery Ventures also invested in September 2010.”
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