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chinese company purchases stax?


cobra_kai

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It does look like the story is true. Hopefully quality will not suffer, but I think it is possible this could be a good thing. If this new company is much larger and financially stable they could support the stax guys to make crazy new products with much less financial risk. The story doesn't seem to mention anything about what happens to current employees though, hopefully they are all being kept on.

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They may take down manufacturing costs moving production to China, but unless they train their Chinese employees to be extremely careful and cautious, the affair of drivers getting dust may become a trademark.

If this is true, I wouldn't buy a TOL Stax product at current prices until proved they're every bit as good quality as the current ones. Maybe in 4- 5 years hahaha.

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I think people at the other forum are overreacting, but then what Edifier's been saying about making the company more profitable, introducing more affordable models ("with portable electrostatics as the main product") and using their production know-how, lowering the production costs, is seriously worrying. It seems as if they want to completely change how Stax does things.

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I guess there is some disagreement about the final amount, but it sounds like it is indeed only $1.5M, at least according to the Japanese source cited in the thread over yonder. One of the first posters apparently mistakenly said it was 97.6 million yuan, but the actual amount is 9.76.

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I would have thought the brand-name was worth more. There is a lot of goodwill behind it, so even if you just want to run the name into the ground, I think you could use the Stax name to sell a lot of low-end crap (see Marantz) and make a handsome profit. Obviously both sides did their due diligence, so my wild guess is clearly off.

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It's a boutique manufacturer, I would be pretty surprised if it had more than $0.5M in annual revenue. The English translation has the 9.7 million Yuan number which is definitely 1.5. Doesn't mention assuming any debt which I would assume is required to be mentioned if it's being done.

no way, they have more than $500k annual revenue. i would guess they are around $4-5 million annual revenue. really depends how much of the 'low end' they sell that we don't hear about.

i think the $1.5 million sounds accurate.

Edited by justin
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There's no way it could be only $1.5MM.

Truth. No way, period. Well, I'm glad I've already got what I need and I should be set for some time to come. Still, there is no reason that this purchase necessarily means things will change. China is going to own everything pretty soon, anyway, so maybe it's good Stax was on the short list.

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