The MUSIC Group has entered into a $1.1 Billion USD agreement to add the popular online discussion site Sound Forums Network (SFN) to its portfolio of brands. The announcement was made at a special press conference attended by the principals of both companies, broadcast from the SFN corporate headquarters at 50 Dalton St.
“Discussion of MUSIC Group brands like Behringer, Midas, and Turbosound already occupies all our forum traffic”, said SFN co-founder Bennett Prescott of the move. “It made logical sense to consider an acquisition by MUSIC Group. This will allow them to leverage their brand’s synergy on the global marketplace of the Internet and increase velocity for all of their product lines. As one of the most traveled professional audio bulletin boards in the English language, we are uniquely qualified to manage conversations for them in the broadest possible context.”
Although Sound Forums Network has primarily run the live audio centric discussion forums at soundforums.net, MUSIC Group plans to use their technology for brand communication, media relations, and market research. In discussions with analysts, MUSIC Group spokespeople have stated they will be hiring a writing team to create original content for the site. Their focus will be research into the latest pro audio techniques and technologies, presented for understanding and immediate use by tomorrow’s audio professionals. New resources provided by this acquisition will allow the network to become more true to its original mission by adding new forums for recording, DJs, guitarists, and broadcast engineering.
Uli Behringer, CEO of the MUSIC Group, commented on the purchase: “We have been working with SoundForums.net for over a year now, and received an outstanding response to new product releases from their members. Recently I have seen other online brands with no physical product, like Oculus and WhatsApp, sell for enormous sums. I wanted to make sure we could be part of that kind of wanton disregard for actual market value as well.”
Sound Forums Network will continue to operate independently from its headquarters in Boston, Mass. The deal is expected to close in the second quarter of 2014. Arthur Anderson consulting will handle the transition of ownership.
Photo: Sound Forums Network founders David Karol and Bennett Prescott.
