Denon, Marantz and B&W: Business closure allegedly on the cards

In the highly competitive hi-fi market, the brands belonging to Sound United, such as Denon, Marantz and Bowers & Wilkens, have long seemed like a rock in the surf. However, there are currently increasing media reports that Sound United's parent company Masimo is considering discontinuing the – division, which also includes HEOS, Boston Acoustics, Polk Audio and Definitive Technology – at the beginning of 2025.

The presentation of the financial report for the third quarter of 2024 at the beginning of the month caused initial unrest. In it, Masimo reported a net loss of USD 12.9 million for the past three months and USD 31.3 million since the beginning of 2024. In the first nine months of 2023, the net loss was still USD 21.2 million. The result is in stark contrast to the consistently positive figures in the Medical Technology segment.

In particular, a possible spin-off of the consumer business was already mentioned during the presentation of the figures. Company representatives emphasized that this step was still being discussed and that no final decision had been made. According to the Australian industry website ChannelNews, however, the statements should be understood to mean that Masimo has already spoken to a number of buyers, but has so far been unsuccessful due to falling sales and rising losses.

In addition, Masimo has announced that all activities will be concentrated in the new office in Eindhoven (Netherlands). The offices in France, Finland, Switzerland and Germany have been or will be closed. As Masimo spoke of "not continuing" the division in case of doubt when presenting its financial report, the question now arises as to what alternatives remain to closing the business if no buyer is found. Heise online has not yet received an answer to a corresponding query.

Turbulent history

The Denon and Marantz brands have already had a turbulent journey: at the beginning of 2017, the US company Sound United, parent company of Polk Audio, Definitive Technology and Polk Boom, announced the acquisition of the D+M Group with its Denon, HEOS by Denon, Marantz and Boston Acoustics brands. At the end of 2020, the company then announced the completion of the acquisition of Bowers & Wilkins (B&W).

For a short time, it even seemed as if Sound United would also acquire its troubled competitor Onkyo Home Entertainment Corporation (including Pioneer). However, the company refrained from doing so - allegedly after Sound United took a closer look at Onkyo's books.

This was followed in early 2022 by the surprising news that Sound United itself would be acquired – by the Californian company Masimo Corporation. The move caused great surprise, as there were apparently no points of contact between the medical technology company and the hi-fi company.

Analysts therefore 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 acting as interim CEO. Immediately after Masimo's quarterly report, the share price rose sharply and has since reached a new 12-month high. (nij)