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Many small classical record labels are facing an uncertain future in the wake of a decision by Tower">http://www.towerrecords.com">Tower Records to put three classical distributors on buying hold. News of the decision, and discussions about its ramifications, have circulated on the Internet after an internal memo was leaked on May 1. The memo from company headquarters ordered store buyers at all 113 Tower stores in the US not to purchase from Allegro, Harmonia Mundi, and Qualiton, until receiving further notice. The three distributors represent dozens of small independent jazz and classical recording labels.

Hard-disk–based audio systems having been gaining traction in recent months, with a half-dozen consumer electronics companies announcing or selling products. These new components model what savvy computer users have been hacking together for years—a software-controlled music library based on hundreds or thousands of CD or MP3 files stored on a hard disk.

When Kohlberg Kravis Roberts & Co. and Goldman Sachs decided to call">http://stereophile.com/news/092407harman/">call off their projected">http://stereophile.com/news/043007harman/">projected $8 billion takeover of Harman International Industries, Inc., industry experts predicted the audio company would take the two financial firms to court, if not to gain the $225 million termination fee, to force them to abide by their material adverse effect statement and complete the transaction.

Today, Harman said that it has completed its acquisition of Sound United, adding Bowers & Wilkins, Denon, Marantz, Classé, Definitive Technology, Polk Audio, and Boston Acoustics to its portfolio.

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.

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%.

Following a recent announcement of "diminished expectations" for the near future (see previous">http://www.stereophile.com/news/10194/">previous story) and a shakeup of upper management---in which Consumer Group marketing honcho Tom Jacoby was put out to pasture and audio guru Floyd Toole was promoted to senior vice president of acoustic and transducer engineering---Harman">http://www.harman.com">Harman International Industries has put the finishing touches on a new 10,000-square-foot audio laboratory. At company headquarters in Northridge, CA, north of Los Angeles, the laboratory includes a 10,000-cubic-foot anechoic chamber for testing and measuring loudspeakers, and a multichannel room with computer-controlled, hydraulically operated platforms for positioning front left, center, and right speakers (a reviewer's dream!).