I would not invest in any high end audio manufacturer
Are Marantz and Bowers & Wilkens becoming pawns in Masimo's internal fight?
Last year I decided to add Masimo (MASI) to my play money investment portfolio and the latest batch of communications from the MASI board are an entertaining read; a soap opera of internal fighting, CEO lavish spending and allegations of director incompetence.
As you might already know from previous threads Masimo is the owner of Sound United (Marantz, Bowers and Wilkins, Harmon Kardon, etc). These brands have changed hands many times from their original owners and founders. Historically, the new owners brought much needed cash and allowed them to operate as independent entities.
From the outset it was questionable as to why Masimo; a predominantly health care device company would want consumer electronics, but they did announce some advancements with B&W and hearing assistance products. Also, it wasn't clear how much independence Masimo would continue to allow these consumer electronics brands to have.
Where is it at today? As major investor in Masimo, Politan LLC wants the CEO out. He's alleged to have spent too much corporate money on a G550 private jet and trips to points like Santa Barbara 😉, and to have allowed the main company brands and Sound United brands to underperform the market substantially. Since being acquired by Masimo, Sound United revenue is down as much as 49%.
The future; the CEO has proposed leaving Masimo for a big buyout and wants to take Sound United with him. Not sure if that would be better for Marantz and B&W or just to spin them off one by one. Anyone out there with a desire to buy a consumer electronics company(s) and a lot of extra cash? It may be the only way to save Marantz and B&W.