Bose acquires Skullcandy in surprise deal as it looks to attract younger headphone buyers

Bose has acquired Skullcandy outright in an unexpected deal, aiming to attract younger headphone buyers. The acquisition is valued at an undisclosed amount, but Mill Road Capital paid $196.6 million when it took Skullcandy private in 2016. Bose plans to keep Skullcandy as its own brand, maintaining its headquarters in Park City, Utah.

This acquisition allows Bose to leverage Skullcandy's technology, distribution, and retail partners while retaining its distinct identity. Bose plans to invest in Skullcandy's growth. The acquisition is driven by Bose's desire to reach a younger demographic. While Bose is known for high-end noise-canceling headphones, Skullcandy has a strong presence in skate and snow culture, gaming, music, and fitness.

Skullcandy's latest headphones, including the $129 Method 360 ANC earbuds and $280 Crusher 1080 ANC headphones, utilize Bose drivers and noise cancellation technology. Skullcandy's adjustable sensory bass feature enhances the low end with vibrations. Bose's recent return to wired earbuds and its investments in other audio companies reflect its strategy to expand its market reach.