It was a great day for WiSA Technologies (NASDAQ:WISA), at least for a while. WiSA closed up 1.9% in Monday’s trading, but that represented a long drop from its height on Monday. The extreme developments traced back to one big new acquisition on WiSA’s part that would help its aspirations of audio development.
WiSA picked up Comhear, an audio technology maker that uses artificial intelligence in its design of adaptive audio systems. With Comhear, a speaker system can adjust its output according to the shape of the room it’s in. This will likely be welcome news for anyone who’s tried to set up a home theater system in an unusually-shaped room. WiSA expects the transaction to conclude in the third quarter and start being accretive in the fourth quarter. WiSA picked up Comhear in a straight stock deal, trading newly-minted WiSA shares for all of Comhear’s outstanding common stock.
WiSA expects to pull in between $10 million and $15 million annually as a result of the deal, noted CEO Brett Moyer. With Comhear’s technology in its toolbox, Moyer noted, WiSA should be able to add its name to the roster of leaders in immersive wireless audio and seize market share in a market that’s gaining ground. Gaining ground much to movie theaters’ distress; with the home theater market expected to reach $33.21 billion by 2030 at a compound annual growth rate (CAGR) of 18.54%, that’s a potentially big deal for WiSA.
The last five trading days for WiSA stock have shown some unusual patterns. WiSA was actually on an upward cant before the news about Comhear landed. Then, WiSA shares went straight up before a strange kind of buyer’s remorse kicked in. By the end of the trading day, WiSA lost nearly all of its gains and retreated back to approximately where it was before the Comhear news hit.
