Video Game Brand Razer Acquires Audio Company THX In Ambitious Expansion Across Entertainment Industry

17 October 2016, 10:18 pm EDT By Aaron Mamiit Tech Times
Video game brand Razer revealed that it is acquiring audio company THX, though details were not disclosed. The purchase presents Razer's ambitious plans of expanding into the wider entertainment industry.  ( Steve Jennings | Getty Images )

Razer, a video game company known for its computer hardware and accessories, has purchased THX, an audio company that was started by the man behind the Star Wars franchise, George Lucas.

The California-based and privately-owned Razer, which covers everything to cater to the lifestyle of hardcore gamers, was founded in 2005 and was last known to carry a value of $1.5 billion. The high quality, sleek designs and high prices of its devices has given the company the nickname of being the "Apple of the gaming industry."

THX, on the other hand, was founded by Lucas back in 1983. It has since changed ownership several times, but has never strayed from its business of creating high-end audio and video set-ups and environmental designs. THX gives out certifications to products that meet the highest standards in terms of audio and video specifications in the entertainment industry.

The two companies have now come together in an unlikely union, as Razer CEO and cofounder Min-Liang Tan, in an interview with Business Insider, revealed the company's acquisition of THX.

Tan did not state the details of the purchase, but did note that Razer will not be making any changes to the staffing and management of THX. The audio company will be allowed to continue operating as a separate entity, only under new ownership.

The acquisition presents Razer's ambitious plans of expanding beyond the video game industry, where it has carved out a unique name for itself, into the wider entertainment industry.

According to Tan, there will be no cross-branding initiatives involving the two companies. However, he sees Razer and THX potentially working behind the scenes, especially with Razer seeing the potential of applying THX's expertise in new categories such as virtual reality and spacial surround sound.

Specifically, one area that the company can work on is the development of acoustics that will make virtual reality environments more realistic, with sounds seemingly coming from certain points around the gamer.

Razer could also be looking to expand its line of physical audio products beyond video game headsets, a move that would benefit from the addition of THX into the fold. The company, however, said that it will not automatically gain THX certification for its devices just because it purchased the company.

For THX, CEO Ty Ahmad-Taylor said that Razer is mostly helping out in the expansion of the company's certification business, along with the attempt to penetrate more markets in China. Across the entertainment industry, potential markets that THX could tap into include Bluetooth speakers, mobile devices such as smartphones and tablets, and streaming video.

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