If MIT will have no voting authority under this new arrangement then I wonder what the value of actually giving the shares is. Couldn't Bose just donate all their earnings to MIT every fiscal year instead, earn a tax deduction and avoid the dividend tax that will be assessed to MIT?
Bose founder makes big stock donation to MIT
51–60 of 99 posts
Re: Bose founder makes big stock donation to MIT
#52Dr. Bose strongly believes that the company would have gone down a terrible path had they taken on any VC money. He had always wanted Bose Corp to focus on research, and thus all profits are poured into funding more R&D. No doubt this decision makes it possible for him to donate the majority of shares to MIT today. I still remember his words: "Those MBAs would have had me fired in no time." So how did he fund the com…
So in the popular parlance of today he would have been classified as a slow growth, lifestyle business, right?
Re: Bose founder makes big stock donation to MIT
#53Earlier quoted context omitted.
Who were his large investors?
It was initially funded, at least partially, through research grants, I believe. But, shouldn't you have instead said, "Wasn't Bose a bootstrapped company?" if you were talking about how the company was funded?
Sure, but I was playing off the contrast as it's typically being made today. Sounds like he never had an interest in VC.
Seems like Bose is at least one counterpoint to this view: http://news.ycombinator.com/item?id=2338140
Re: Bose founder makes big stock donation to MIT
#54Earlier quoted context omitted.
Amar Bose was a good professor, and in making this donation to his alma mater, he continues to carry on the tradition of MIT graduates doing good things long after they've made a name for themselves. His work today in no way lessens the impact of an audiophile's criticism of his company's products. Not only are they overpriced in consideration of value delivered, they are in many respects poor implements for faithful…
Which companies are better than Bose?
For headphones, I've heard wonderful things about pretty much everything made by "Grad Labs"
http://www.amazon.com/s/ref=nb_sb_noss?url=search-alias%3Dap...
Re: Bose founder makes big stock donation to MIT
#55This is an incorrect title; the wrong conclusion may have been drawn. Although he has given them majority shares they are nonvoting only. The terms of.the gift forbid them from selling the shares or participating in any management or governance of the company. Bose is remaining a private / independent company still run by said founder. This is essentially a gift that should pay nice stock dividends for MIT.
Can't the remaining shareholders vote to suspend dividend payments indefinitely?
No; something akin to minority shareholder rights applies.
Re: Bose founder makes big stock donation to MIT
#56Earlier quoted context omitted.
Amar Bose was a good professor, and in making this donation to his alma mater, he continues to carry on the tradition of MIT graduates doing good things long after they've made a name for themselves. His work today in no way lessens the impact of an audiophile's criticism of his company's products. Not only are they overpriced in consideration of value delivered, they are in many respects poor implements for faithful…
Which companies are better than Bose?
Sennheiser makes fantastic products, even if they occasionally like to cripple them (http://mikebeauchamp.com/misc/sennheiser-hd-555-to-hd-595-mo...) and the sound quality is significantly higher than anything by Bose at a similar price point.
Re: Bose founder makes big stock donation to MIT
#57All your Bose are belong to MIT.
Re: Bose founder makes big stock donation to MIT
#58Dr. Bose strongly believes that the company would have gone down a terrible path had they taken on any VC money. He had always wanted Bose Corp to focus on research, and thus all profits are poured into funding more R&D. No doubt this decision makes it possible for him to donate the majority of shares to MIT today. I still remember his words: "Those MBAs would have had me fired in no time." So how did he fund the com…
It would be fascinating to know more about how Bose funded his company without venture captital. Has that story been told somewhere? And, who's "Lee"? Thanks!
Re: Bose founder makes big stock donation to MIT
#59Folks like to rag on Bose products (and from a pure sound quality standpoint they are overpriced IMO) but Amar Bose was the best professor I had and his enthusiasm for engineering and acoustics showed in all of his lectures. He's been good to MIT over the years (MIT students, faculty and affiliates get substantial discount) and this is another example of him giving back. I hope this encourages MIT to resurrect some o…
Amar Bose was a good professor, and in making this donation to his alma mater, he continues to carry on the tradition of MIT graduates doing good things long after they've made a name for themselves. His work today in no way lessens the impact of an audiophile's criticism of his company's products. Not only are they overpriced in consideration of value delivered, they are in many respects poor implements for faithful…
"Faithful reproduction" is not a goal of Bose kit. A psychoacoustically pleasing reproduction with fine detail, by simulating the effects of a better acoustic environment in a room of a house is.
I have a pair of Bose speakers. They cost me $100. I wouldn't use them for pro work, but I don't feel ripped off by them because when I put my TV out or music through them, they deliver on the ads' promise of "room-filling sound".
Re: Bose founder makes big stock donation to MIT
#60I attended one special lecture by Prof. Bose while at MIT. I can't remember the subject matter specifically -- something about acoustics. But I remember the feeling of the man: humble, wise, noble. This news reminds me of that feeling.