Thread: B&W to be “spun off”

Masimo Board 'Authorizes' Management to Prepare Spin-Off of Consumer Unit - Strata-gee.com


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Head scratching. The original acquisition had no strategic alignment. Waste of money and distraction for employees and shareholders.

Originally Posted by Ritmo

Head scratching. The original acquisition had no strategic alignment. Waste of money and distraction for employees and shareholders.

Agreed. What a "disaster". I don't know what the execs that originally set this up were thinking.

Oh, wait...they weren't.

I consult for a company that has some dealings with Masimo. As a physician, I have noticed the Masimo units become common place in the hospitals. Very good market penetration.

Now, being cash rich, they are looking for a new market place. The big kahuna target is health care in the home. There must have been some bit of technology, or IP, that they were after. Perhaps it did not work out, or they extracted what they wanted. No reason for a company involved in healthcare to continue the business of consumer, audio gear. I’m not familiar with then entire group that was purchased, back on the market again.

My opinion only from my observations, and conjectures, to be sure. No actual knowledge.

Originally Posted by Bones13

I consult for a company that has some dealings with Masimo. As a physician, I have noticed the Masimo units become common place in the hospitals. Very good market penetration.

Now, being cash rich, they are looking for a new market place. The big kahuna target is health care in the home. There must have been some bit of technology, or IP, that they were after. Perhaps it did not work out, or they extracted what they wanted. No reason for a company involved in healthcare to continue the business of consumer, audio gear. IÂ’m not familiar with then entire group that was purchased, back on the market again.

My opinion only from my observations, and conjectures, to be sure. No actual knowledge.

Agree, its a healthcare tech company, not an audio company.

Could never get my mind around why Masimo acquired what they did. They could have saved a lot of money and partnered with a company to meet and achieve their desired goals. Masimo acquired audio products maker Sound United LLC for $1 billion in 2022, which was poorly received by investors who sent shares tumbling 37%, wiping away about $5 billion in market value. Just to show how bad that decision was, Masimo shares jumped 13% in extended trading Friday after the company announced that it plans to spin off its consumer unit to improve profitability in its healthcare business.

Now whom buys these audio companies as they yet again go on the audio merry go round.

Originally Posted by CPP

Agree, its a healthcare tech company, not an audio company.

sounds like a match made in heaven for Bose .........

Originally Posted by Mikado463

sounds like a match made in heaven for Bose .........

Why, because they make your ears bleed and then you need medical assistance?

My take is Bones is correct the company had a vision/plan for use of Sound United. There was an earlier article published on this and demonstrated by Denon's ear buds that measure the inside of your ear canal for sound optimization. Keep in mind there are a few brands of electronics involved not just B&W. There could have been other products introduced I'm just not aware. I got the impression the tech could flow both ways medical impacted consumers and some of the SU tech helping in the medical field.

This may have worked but obviously the move wasn't fully embraced and you know what is said about a house divided. Hence the initial stock drop. Americans with their need for instant results or perhaps the vision wasn't explained or understood properly. The acquisition wasn't just for investing or fun there was a strategy.

Originally Posted by Mr Peabody

My take is Bones is correct the company had a vision/plan for use of Sound United. There was an earlier article published on this and demonstrated by Denon's ear buds that measure the inside of your ear canal for sound optimization. Keep in mind there are a few brands of electronics involved not just B&W. There could have been other products introduced I'm just not aware. I got the impression the tech could flow both ways medical impacted consumers and some of the SU tech helping in the medical field.

This may have worked but obviously the move wasn't fully embraced and you know what is said about a house divided. Hence the initial stock drop. Americans with their need for instant results or perhaps the vision wasn't explained or understood properly. The acquisition wasn't just for investing or fun there was a strategy.

there was a strategy. And it failed, or did they just bleed the actual work group they needed, and now that workgroup stays with this parent and the rest is out the door. I've seen that so many times.