In the highly competitive hi-fi market, Sound United-related brands such as Denon, Marantz and Bowers & Wilkens have long appeared like a rock. However, there are currently increasing media reports that Sound United’s parent company Masimo is considering shutting down the division as early as 2025 – which also includes HEOS, Boston Acoustics, Polk Audio and Definitive Technology.
Advertisement
The presentation of the financial report for the third quarter of 2024 caused initial unrest at the beginning of the month. Massimo has reported a net loss of $12.9 million for the branch in the last three months and $31.3 million since the start of 2024. The net loss in the first nine months of 2023 was $21.2 million. The result is a stark contrast to the consistently positive data in the medical technology sector.
On top of that, a possible spin-off of the consumer business was mentioned when the figures were presented. Company representatives stressed that the move is still under discussion and no final decision has been taken. According to the Australian Industry website channelnews However, the statements should be understood to mean that Massimo has already talked to several buyers but has had no success so far due to falling sales and increasing losses.
Furthermore, Massimo announced that it will focus all activities in the new office in Eindhoven (Netherlands). Offices in France, Finland, Switzerland and Germany have been or will be closed. Since Massimo had said in its financial report that it would “not continue” the divestment if there were doubts, the question now arises as to what options remain to close the business if no buyer is found. Heise Online has not yet received a response to the related request.
turbulent story
The journey of the Denon and Marantz brands has already been a tumultuous one: in early 2017, the American company Sound United, parent company of Polk Audio, Definitive Technology and Polk Boom, announced its acquisition of D+M Group along with its brand Denon. Announced. HEOS by Denon, Marantz and Boston Acoustics. In late 2020, the company announced the completion of the acquisition of Bowers & Wilkins (B&W).
For a brief period, it even appeared that Sound United would also absorb its weaker rival Onkyo Home Entertainment Corporation (including Pioneer). However, the company refrained from doing so – apparently after Sound United took a closer look at Onkyo’s books.
In early 2022, shocking news came that Sound United would be acquired by California-based company Masimo Corporation. The move came as a great surprise as there was apparently no point of contact between the medical technology company and the hi-fi company.
So analysts speculated at the time that it was an “emotional purchase” by Masimo founder Joe Kiani. He has since been removed as CEO of the company, with Michelle Brennan currently serving as interim CEO. Shortly after Masimo’s quarterly report, the share price rose sharply and has now reached a new 12-month high.
(Private)
