Meridian Unplugged - Powered by MrTechGuy.co.uk Forums Discussion Meridian - Systems Meridian will never go Bankrupt?

Hi~

Just had a nice conversation with one of members in my local audio community, and he claims that Meridian will never go bankrupt because of the guarantee they periodically receive from the Dolby Labs, and this financial strength allowed Meridian to build a very nice and delightful factory (compared to other audio makers who have a really factory like factories). I also realized that Richemont group is investing on Meridian, which would provide sound financial stability.

So, do Dolby keep sending pay checks to Meridian because of the MLP technology?

Anyways, sounds like good news (new to me at least) as a Meridian user, and this would be why Meridian is a frontier in technology innovation to improve sound experience, rather than focusing on making more profit, or stay alive in the business which is the case for many other audio brands.

I guess one less thing to worry about in terms of getting a good service on my legacy DSP6000, whenever it encounters a problem going forward.

I don't know about the $$$ from Dolby, but no company is ever immune from bankruptcy; just look at some of the giants that have failed over the years: Lehman Brothers, Pan Am, American Airlines, General Motors... Meridian is a very small player compared to any of that lot.

Just because they receive a regular cheque does not mean M is immune to bankruptcy. Like any business, management decisions can make or break them. Fortunately they appear to be doing OK at present.

Greece receives regular payments as well, but their debt burden is too large for these payments to ever make up for.

Er, sorry to have to be another kill-joy, but Meridian bought the TAG-McLaren-Audio state-of-the-art factory in 2004, which is mentioned here and here.

Haven't they had to be financially rescued a few times in the past?

Russ

Hmmm... interesting.

I agree that the expression was bit exaggerated, and of course no company is immune to bankruptcy, but at least my impression upon hearing these fact were that they are one of the financially strongest among other various Hi-Fi audio makers. But I guess there are other stories as well.

I think if you look across the Hi Fi and audio visual industry many smaller / medium business's are or have been owned by some sort of investor.

Arcam. Cyrus...

As long as Dolby don't go broke.

Meridian sold its interest in MLP to Dolby some 10 years ago. The company has been owned and controlled by the private equity group, Muse, for many years now. Muse’s pockets are very deep and in theory they could fund the company indefinitely. They have a good reputation as long-term investors but like all investors they will be looking for a return on their investment at some stage. MQA may provide the opportunity to make a substantial profit, just like MLP did all those years ago.