Amar Bose donates his company to MIT

By on May 1, 2011, 4:12 PM

Dr. Amar Bose, founder of the company that bears his name, has given the majority of the stock of Bose Corporation to the Massachusetts Institute of Technology (MIT). The donation is in the form of non-voting shares. MIT will receive annual cash dividends on those shares when dividends are paid by Bose Corporation; MIT says it will use the money to sustain and advance its education and research mission.

Under the terms of the gift, MIT cannot sell its Bose shares and will not participate in the management or governance of Bose Corporation. The company, which was founded in 1964, will remain private and independent, and operate as it always has, with no change in strategy or leadership.

Dr. Bose, who received his bachelor's degree, master's degree, and Ph.D from MIT, all in electrical engineering, will remain Bose Corporation's Chairman and Technical Director. Bose was also asked to join the faculty in 1956, and accepted with the intention of teaching undergraduate electrical engineering for no more than two years, but continued as a member of the MIT faculty until 2001.

Headquartered in Framingham, Bose Corporation is a private company perhaps best known for its audio products, including speakers and sound systems. Last year, Bose Corporation had revenue of over $2 billion.

In a letter to Bose Corporation employees, Dr. Bose paid tribute to his mentors at MIT: Professors Y. W. Lee, Norbert Wiener, and Jerome Wiesner, while explaining that the gift represents his long-held desire to support MIT education. He also reaffirmed the company's mission to play for the long run: "We will continue to remain true to the principles upon which our company was founded."

The actual value of the donation was not disclosed. "Dr. Bose and Bose Corp., a privately held company, keep details of financial matters confidential," an MIT spokesperson said in a statement. "MIT will honor that confidentiality and will not discuss the financial details of this gift."

"Amar Bose gives us a great gift today, but he also serves as a superb example for MIT graduates who yearn to cut their own path," MIT President Susan Hockfield said in a statement. "Dr. Bose set the highest teaching standards, for which he is still admired and loved by his faculty colleagues and the many students he taught. His insatiable curiosity propelled remarkable research, both at MIT and within the company he founded. Dr. Bose has always been more concerned about the next two decades than about the next two quarters. Dr. Bose has asked us not to shine too bright a spotlight on him today. So to honor that wish, let us simply celebrate Dr. Bose's profound belief in the transformative power of an MIT education."




User Comments: 11

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Burty117 Burty117, TechSpot Chancellor, said:

I love Bose products, Mr Bose is awesome! I have the companion 5 and series 2 iPod station, both bring a warm fuzzy feeling to me when I play music through them, I hope they keep to their promise and continue to create such impressive products

yRaz yRaz said:

Don't get me wrong, Bose is great, but it is WAY overpriced. You can get quality products for a much lower price. I will stick with Klipsch.

Leeky Leeky said:

Nice to see someone so willing to repay the very teachers that in most part made all his dreams possible.

Its generosity you rarely see these days tbh.

LinkedKube LinkedKube, TechSpot Project Baby, said:

Why not cash your shares and donate it to a cause that actually needs it. I'm sure MIT isn't on short supply of money or patents and knowledge.

pcnthuziast said:

Gordon Freeman approves!

dotVezz said:

Okay. I support this 100%.

Sure, donating to the "needy" is good, and if that's what makes your heart feel fuzzy, then fine, elevate yourself onto your personal pedestal and donate to whatever cause you like and feel all proud and accomplished because you "did the right thing".

Mr. Bose has an emotional investment in his university, as most of us do, and he shows his appreciation in a very applicable way. I appreciate that he is man enough to donate to something he really cares about, something that's really in his heart, instead of just cashing out to some Japan charity just to look like a good guy.

I happen to hail from a city that was injured financially because of Hurricane Katrina - not because of the storm, but because of the hail of victims who came and milked *your charity* and my city to the very last drop, then still complained more, and never showed any real appreciation for everything that everyone did for them. I have met many Japanese people in recent months, and they all show their appreciation to whoever helped them not only in words, but in character. They wear their humility and gratitude.

Don't get me wrong, and I hope I don't offend anyone. If you care about Japan, then donate. If you just donate to Japan funds for publicity, then don't.

Congratulations, Mr. Bose.

Richy2k9 said:

hello ...

how i wished i was the owner of the MIT :P ... love BOSE .. the best! & this is good deed, i agree too.

cheers!

Guest said:

Dr Amar Bose has set a new bench mark in Passion Quotient - PQ for Alma Mater. Salutes to him for showing that its Alumni achievements which add altitude to alma mater.

dividebyzero dividebyzero, trainee n00b, said:

Why not cash your shares and donate it to a cause that actually needs it. I'm sure MIT isn't on short supply of money or patents and knowledge.

I would strongly agree with your sentiment -as will become apparent in the next paragraph or two...

MIT and most of the big names in U.S. tertiary education have been in an arms race (or acquisitions race) for some years...

Dr Amar Bose has set a new bench mark in Passion Quotient - PQ for Alma Mater. Salutes to him for showing that its Alumni achievements which add altitude to alma mater.

Not even close.

Harvard endowment $27.4 billion (2010)

Yale endowment $16.7 billion (2010)

Princeton endowment $14.4 billion (2010)

and lowly MIT at $7.9 billion -including a measly $104 million from gifts/legacies. You can now add the share dividend accruing from the company (~$US2bn revenue per annum at present)

With that kind of financial base, it makes you wonder why U.S. learning institutes command such high course fee's.

9Nails, TechSpot Paladin, said:

yRaz said:

Don't get me wrong, Bose is great, but it is WAY overpriced. You can get quality products for a much lower price. I will stick with Klipsch.

True about the price. And Klipsch is a nice product as well, but I really can't complain after I had a pair of their headphones break on me over two years of frequent but gentle use. (The plastic seemed to have become brittle in that short time and the headband cracked off.) I called Bose support to see if they offered replacement parts and they sent me a brand new headset with full 1-year warranty for exchange. Their other products that I own, my factory car stereo, AM15 home theater speakers and iPod Sounddock are excellent and I would recommend them.

I don't know what is it about Bose products, I've seen that they meter against the competition unfavorably by a mic, but to my ear they just seem to sound better.

9Nails, TechSpot Paladin, said:

Hey MIT, check out the Bose car suspension when you get some time:

[link]

I'd like this in my next new car please

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