To the surprise of many, Masimo – originally active in the medical equipment market – bought Sound United. That adventure is about to end.
It was an odd purchase, in 2022. Masimo is a company that operates in the professional healthcare industry and has some consumer medical devices in its product line too. Strangerly enough they bought Sound United, an amalgamation of numerous brands including Denon, Bowers & Wilkins, Marantz and others. Investors immediately disapproved of that purchase mercilessly: Masimo shares collapsed completely immediately after the acquisition on Feb. 15, 2022. To this day, those shares are still worth only a fraction of what they once were. Due in part to an activist shareholder, there has been quite a stir behind the scenes, it now appears.
And it was announced yesterday that Masimo’s board of directors has given permission to initiate a spin-off of the consumer unit. That includes Sound United with all the brands under it. As well as the company’s modest consumer medical device business. Such as the Freedom Smart Watch & band and the Stork baby monitor.
What’s next for Sound United?
What this separation will mean for Sound United and the brands that fall under that umbrella is anybody’s guess. Possibly it will be resold or simply disbanded. Which brands will then be bought by other investors, continue on their own or disappear? Time will tell. But a new chapter has begun in the saga surrounding Sound United. At the moment it is not yet known when the spin-off will actually be carried out. But looking at Masimo’s troubles, we guess it won’t be a particularly long wait.
You can read more about the goings-on at the source of this post, at Strata-Gee.com.