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Fiscal year 1998 will be one of diminished expectations for Harman">http://www.harman.com">Harman International Industries, Chairman Dr. Sidney Harman announced last week to assembled analysts and fund managers at a meeting in New York. He laid much of the blame on the continuing economic slump in Asia.

The Internet offers unprecedented opportunity for manufacturers to bring their products directly to their markets, but many companies have been reluctant to embrace it for fear of upsetting their established dealer networks. This has been especially true of mid-to-high-end audio companies, who have traditionally sold their wares through specialty shops.

Harman International Industries, Inc has agreed to be acquired by Goldman Sachs Capital Partners (GSCP) and Kohlberg Kravis Roberts & Co. (KKR) for a price of $120 per share (a total near $8 billion). The share price represents what Bloomberg.com characterized as a 17% premium over its price one day earlier. The company's stock had been increasing in value, having risen by about 2.6% since the beginning of 2007, but beginning April 18, the stock began to surge, "indicating some investors anticipated the buyout," according to Bloomberg. John Rogers, a Citigroup analyst, had predicted in February that Harman was choice for acquisition, estimating that private equity buyers could pay a premium of 20% over its share price and still see annual returns of 20%.

On February 18, Harman">http://www.harman.com">Harman International Industries Inc. announced that it had signed two licensing agreements with New">http://www.nxt.co.uk">New Transducers Limited (NXT) relating to NXT's flat-panel loudspeaker technology.

Audio manufacturers who know what's good for them avoid stepping on the toes of Bose">http://www.bose.com/">Bose, Inc. The Framingham, Massachusetts–based corporation is renowned for it ruthless marketing and zealous protection of its patents.

Harman International announced July 1 that it will close its Madrigal facility in Middletown, CT on August 30 as it continues to consolidate and reorganize its high-end brands under the Harman">http://www.harmanspecialtygroup.com/">Harman Specialty Group banner. Although the name Madrigal was itself not used as a brand on audio products, it had been the umbrella under which Harman had produced and distributed its Mark Levinson, Revel, Audio Access, and (recently">http://www.stereophile.com/news/11612/">recently discontinued) Proceed brands.

Harmonia Mundi, one of the world's leading independent classical music labels, has finally taken the downloading plunge. In an agreement with the Independent Online Distribution Alliance (IODA), the world's largest distributor of digital music content, announced on January 24 at the annual music conference of the Marche International De l'Edition Musicale (MIDEM) in Cannes, Harmonia Mundi will make available its entire catalogue of early music and contemporary recordings to hundreds of digital music outlets around the world. IODA will also handle digital distribution of HM's catalogue within France, where Harmonia Mundi is headquartered. A separate agreement with Apple's iTunes makes all Harmonia Mundi titles available on that site as well. Also available are the classical, world, and jazz titles from the more than 30 independent labels that Harmonia Mundi distributes in many parts of the world.