Bose buys McIntosh, storied maker of high-end luxury audio equipment
The BOSE display at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska.
David A. Grogan | CNBC
Bose Corp. will purchase the McIntosh Group, a deal that will give the Massachusetts-based company control of one of the most storied names in high-end audio.
McIntosh will continue to manufacture the high-end audio equipment it is known for out of its longtime headquarters in Binghamton, New York, Bose CEO Lila Snyder said. The deal also includes Sonus Faber, a company that makes high-end speakers by hand in Italy.
The purchase of the two audio workshops provides Bose access into the high-end luxury audio market, Snyder told CNBC in an interview.
“There is this opportunity for luxury, where the consumer is more discerning, really interested in the heritage and the story, and that handcrafted nature,” she said.
Snyder, who took over as Bose CEO in 2020, did not provide terms or a price for the deal. McIntosh was previously owned by Highlander Partners, a Dallas-based private equity firm.
McIntosh has been making high-end amplifiers and other audio equipment since 1949, and one of its devices can cost tens of thousands of dollars. Sonus Faber sells a pair of speakers that costs $140,000.
The purchase shows how Bose is navigating an environment where there is more competition in headphones and audio electronics than ever. Bose is privately held and doesn’t share annual revenue, although it had about $3 billion in sales in 2023, according to Forbes. It has about 3,000 employees.
Bose enters the high-end luxury audio market
Luxury audio — defined as products that cost more than $5,000 — grew 12% in 2023 to about $2.8 billion in total sales, according to an estimate from Futuresource Consulting. The deal will allow Bose to test a higher-end market for its products, which are already expensive – a pair of Bose headphones can easily cost $350.
“These are different customers that right now we’re not really reaching with our technology and with our products,” she said.
Snyder did not rule out the possibility of Bose producing McIntosh-branded headphones or other products.
“We do think there’s a real opportunity around wearables in the luxury and high-performance space as well, which is something that we would expect you to see from us down the road,” Synder said.
Bose is best-known for its speakers and its headphones, including the QuietComfort headphones line, which was one of the first noise-canceling headsets to hit the market in 2000. It also sells soundbars, wireless earbuds, speakers and audio equipment for cars. It divested a group that built sound systems for auditoriums and other professional environments last year.
The audio market has grown since Bose was one of the few high-end brands.
Bose now competes against some of the biggest companies in the world, including Apple, which bought Beats Electronics for $3 billion in 2014 and released the AirPods in 2016, targeting the premium headphone market.
There is also new audio-focused competition for Bose.
Sonos, which was best known for its in-home speakers, introduced its first noise-canceling headphones earlier this year, although the company is reeling from an app redesign in May that was received poorly by users. Bose also spent the past decade competing with smart speakers from the likes of Amazon and Google that were often priced aggressively low to spur adoption.
The purchase of the two luxury audio workshops could help Bose grow in the in-car stereo market, which Snyder said makes up about a third of the company’s overall business. Sonus Faber produces speakers for Lamborghini cars, for example, and some Jeeps have a McIntosh-branded audio system. One possibility that Bose is excited about is that it can integrate its noise-canceling technology in electric cars to make the vehicle ride quieter, she said.
“There are places today where the Bose brand probably can’t go. Lamborghini is a great example of that,” Snyder said. “You really want the very best kind of cutting-edge technology to be in those luxury or highest-performing vehicles.”
An electric air taxi by Joby Aviation flies near the Downtown Manhattan Heliport in Manhattan, New York City, U.S., November 12, 2023.
Roselle Chen | Reuters
Air taxi maker Joby Aviation in a new lawsuit accused competitor Archer Aviation of using stolen information by a former employee to “one-up” a partnership deal with a real estate developer.
“This is corporate espionage, planned and premeditated,” Joby said in the lawsuit filed Wednesday in a California Superior Court in Santa Cruz, where the company is based.
Archer and Joby did not immediately respond to CNBC’s request for comment.
The lawsuit alleges that former U.S. state and local policy lead, George Kivork, downloaded dozens of files and sent some content to his personal email two days before he resigned in July to take a job at Archer, which had recruited him.
By August, Joby said a partner that worked with Kivork said it had been approached by Archer with a “more lucrative deal.” Joby alleges that the eVTOL rival’s understanding of “highly confidential” details helped it leverage negotiations.
Joby also said the developer attempted to terminate the agreement, citing a breach of confidentiality.
Kivork refused to return the files when Joby approached him after conducting an investigation, according to the suit. The company also said Archer denied wrongdoing, and would not disclose how it learned about the terms of the agreement or provide results from an internal investigation it allegedly undertook.
The lawsuit comes during a busy period for electric vertical takeoff and landing (eVTOL) technology as companies race to gain Federal Aviation Administration certification to start flying commercially. ‘
The sector has also benefitted from President Donald Trump‘s newly minted eVTOL pilot program.
Joby argued in the complaint that it’s “imperative” to protect Joby’s work “from this type of espionage” to promote the sector’s success and ensure fair competition.
Last week, Joby said it completed its first test flight for a hybrid aircraft it’s working on with defense contractor L3Harris. This month, Amazon-backed Beta Technologies, another electric flight company, also went public on the New York Stock Exchange.
Joby shares have more than doubled over the last year, while Archer is up about 68%.
In August 2023, Archer settled a previous legal dispute with Boeing-owned Wisk Aero over the alleged theft of trade secrets. As part of the deal, Archer agreed to use Wisk as its autonomous tech partner.
A hearing is scheduled for March 20, 2026.
Joby and Archer year-to-date stock chart.
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