Amar Bose To Donate Company To M.I.T.

MBC1977 writes with this eyebrow-raising news from CNN: "'The Massachusetts Institute of Technology announced Friday that [Amar] Bose, the 81-year-old founder of the sound system company that bears his name, has donated the majority of Bose Corp.'s stock to the school.' Very cool indeed!"

Comments

Midrange

[Wyatt Earp]

Maybe they'll be able to get BOSE to make equipment that is testable for reviews and has some midrange.

Re:Midrange

[MoonBuggy]

You probably didn't mean anything deep by it, but I find the choice to lump universities under the broad heading of 'charity' an interesting one. Although I think there's little better use for one's money than promoting education, my time spent at a (fairly well-regarded) American university seemed (to my godless commie foreign eyes) a surprisingly commercialised experience. It's clear just from looking at the campus that an awful lot of money is given back by alumni, and this action by Bose further confirms it, but I don't think I could ever get over the voice in the back of my head saying "What about all those times you tried to screw me out of every penny I didn't have?".

I applaud the efforts of people like Bose in giving something back, and I know this is something of a digression. It just seems odd, from my external perspective, that people are happy giving such vast gifts to organisations that treat their students in such a mercenary manner; or, I suppose, that organisations receiving such vast gifts still feel the need to squeeze their students so much...

Re:Midrange

[Russianspi]

I totally agree. My wife and I both graduated with BA's from Christian colleges. She had the typical college finance experience, with the school squeezing every penny that they could out of her, and then sending letters to her (probably for the rest of her life) asking for donations. She liked the school otherwise, but that (although typical) was/is irksome.

I, on the other hand, went to Moody Bible Institute. It is a college that aims to prepare people to do full-time Christian ministry. Since most of these graduates wind up in fields that don't have great earning potential, they don't charge tuition. I'll repeat that: they don't charge tuition. It's not an easy school to get in to, (it's certainly not for everyone) and it is by no means perfect, but it was the right fit for me. (I'm a missionary, but I'm up late tonight doing some open source coding and getting distracted by Slashdot.) Anyway, Moody avoids charging tuition by having a profitable publishing house, as well as a radio station and broadcast media company. All of the profits that they turn from these (as well as some hefty donations) are what keep the financial wheels turning at the school. When I graduated in 2005, they estimated that for my graduating class, the waived tuition amounted to a $78,000 scholarship per graduating student.

I receive letters occasionally from Moody asking for donations, and these are MUCH more easy for me to stomach. I don't have much in the way of spare money at the moment, but if/when I have the means, supporting Moody is something I'd like to do. I appreciate my education, and the fact that I could get through it without taking out ANY student loans, and I'd love to help present that opportunity to others if at all possible.

Anyway, I realize that I'm on a tangent, but I think that Moody Bible Institute is as close to a true non-profit as I've seen any university be.

Re:Midrange

[MoonBuggy]

A fair point, and it is admirable, but it's perhaps worth clarifying that I wasn't only referring to tuition (substantial though it is, the aforementioned godless commie government helped me out a lot in that regard) - I can't imagine living with a commercial loan of that size like so many Americans do, but it's straightforward and clear, it's like the sticker price on the education one receives.

The bit that was unexpected, the bit that really made me think "These guys are in it for the money", was the (sometimes petty, sometimes substantial) hidden costs enforced by university policies. All first years had to live on campus, in housing with rents a good 40%+ above other local options. Many housing plans came with mandatory pre-paid meal plans: distinctly average cafeteria food at rates that work out to $12/meal; an effort to donate all unused pre-pay meals to charity was deemed too costly to implement. Student run societies needed to go through bureaucratic approval in order to purchase food for events from any sources other than the university's private catering contractor. Not only did courses require $70+ textbooks, the campus book store tended to sell them at rates a good 20% higher than Amazon.

It's beginning to sound like I had a real problem with the place, and that's absolutely not the case. I learned a huge amount and there were parts of the American system that I would love to see adopted in England. It's just jarring to go in expecting a public service organisation, albeit one with a significant up-front cost, and instead find the administration to be treating you as a captive audience of customers.

Re:Midrange

[HuguesT]

To get the "message" that they are losing money on every students, Universities pull accounting tricks worthy of Hollywood. They take all of their expenses, including research and administrative related ones on the one hand, they take what students pay on the other, totally ignoring donations, and they say, "eh, student tuition is only one third of our income, therefore student are actually not paying much at all".

In reality, some studies have shown that top-level college education really costs no more than about $40k per year per student for engineering, about $80k for medicine, and sometimes as lows as $10k for maths or philosophy. Law is also cheap. If students pay $200k over 4 years, they are totally covering that. In most of Europe, students typically pay less than $10k per year, sometimes much less. Oxford and Cambridge charge about $15k per year. They seem to be doing quite well nonetheless. As it was reported here not so long ago, even top-level US-universities pay their professors a relative pittance compared with other professionals with similar qualifications.

If universities stopped admitting, they would immediately lose 1/3 of their funding, and so would have to let go of a corresponding share of their staff. They would lose their status and soon all of their donations, losing another 1/3, later they would lose all of their network and influence obtained through alumni, professors would not be needed for teaching and soon the place would be an empty, nearly pointless shell. That doesn't sound like being better off financially.

The morals is that Universities are there for teaching, and students are at the very center of their mission. Research and whatnot is indeed nice, but it is there to attract funding and top-level researcher, ensuring the quality of the teaching because beginner teachers want to join their teams and so work hard to get tenure. A few top-level researchers are also dedicated and excellent teachers, which is very nice from the university point of view, because they get to write the classical textbooks on their field, ensuring more revenues. Students and alumni are not the only teaching-related income universities get. There are many other things to say, but I'll stop.

However, saying that universities would be better off without students is utter bollocks, to be polite.

Re:Midrange

[Xeranar]

MIT is a wonderful place. I almost went there in the early 2000s before opting for a local school that was 7th in engineering (my preferred fields). They were far more willing to work with me on the tuition rates than the school I did choose and MIT was 4 times more expensive at the time. Right off the top MIT gave a half-tuition credit to those they sought out (as to those that simply applied) and then there was further reward if you succeeded. MIT is not a private school and operates largely for the good of humanity. Comparing your local college experience to MIT is really unfair. The only places I can think of that compete are places like Cal Poly Tech and a few other Tech schools in the US. Giving the stock to MIT means they'll have a healthy steady source of income that hopefully will enable them to continue to research when politics pressure their research funds. PS: On the subject of tuition the US has relatively high tuition because schools don't get the kind of funding they need from the state and private schools though non-profit in most cases need to have an excess to invest and protect against the future. Non-profit doesn't mean sum-zero, it means there is no dividend to pay out to trustees and they are limited in their total profits. State colleges by comparison are much cheaper and would be free if the state gave the proper kind of funding they deserved.

Re:Midrange

[thermopile]

I agree completely with HuguesT, above. The notion that universities are "just barely scraping by" is absurd.

College Tuition has been rising at about twice the rate of inflation over the past ten years. If you look at Harvard's endowment, they could easily pay every student's tuition based on extremely conservative returns on their 26 billion investment.

Colleges and universities are a racket. Few other industries, as a whole, have experienced the same kind of wholesale constant increase in funds like the education market.

Well, except for the defense industry, but that's another story.

To get back on topic, donating voting shares to MIT would have been a very interesting opportunity for students -- they would get to run the company, and learn all about the real-world application of technology. Alas, with dividends only, I'm not sure there's as much education going on as there could have been.

Misleading headline

[Josh Triplett]

The headline makes this story sound more sensational than the reality. MIT doesn't get any control over the company, just a pile of dividend-bearing stock.

Re:Misleading headline

[samwichse]

http://en.wikipedia.org/wiki/Non-voting_stock

And the link?

[TubeSteak]

Is it just me, or did Timothy manage to strip out TFA between the firehose and the front page?

http://money.cnn.com/2011/04/29/technology/bose_mit_donation/index.htm

Re:M.I.T. already has an $8 billion endowment.

[Sulphur]

Why not give it to a school or schools that actually deserve the money?

FTFY

Re:Caltech

[FleaPlus]

No one at Caltech has to use Bose, they can build their own that are better.

Curiously enough, there used to be a Caltech project class based on pretty much exactly that, although it's unfortunately no longer offered:

http://www.its.caltech.edu/~musiclab/

As a bit of trivia, Caltech alum Bill Gross actually ended up founding GNP Audio based on an engineering project he did as a student. He later went on to co-found, like, a gajillion other companies.

Re:Here's to hoping ....

[secretcurse]

I'm a white male starting my PhD in the fall and I'm getting more money from the state of Arkansas than a foreigner would because I'm an Arkansas resident. I also had my undergrad degree fully funded by a state scholarship (to the tune of around $80,000). My university is practically begging locals to pursue a PhD. My foreign colleagues generally have to pay full retail and don't get the federally backed student loans my wife is relying on for her AuD. By the time I finish my PhD, it's looking like my state will have paid somewhere in the neighborhood of $250,000 to educate me. I'm thankful for that and plan on living in Little Rock for the rest of my life so my taxes can help future students.

Re:Lows for the size

[ColdWetDog]

Among self-contained radios as small as a Wave music system, can you recommend one with better lows?

Just tune to pretty much any Country / Western channel. That'll bring you down.

Re:Mutually exclusive

[Jafafa Hots]

The problem with Bose radios is they need green ink on them to improve the sound quality.

http://www.malcolmsteward.co.uk/?page_id=504

(Warning - link is NSFAS Not safe for the allergic to stupid)

Re:Bose quality

[Swarley]

While the bumper sticker Bose trashing you've been hearing here is pretty much accurate, if you read serious reviews you'll find that the universal gripe with Bose isn't really their sound but their value. They don't sound bad so much as they sound just as good as equipment costing a third as much money, and they sound considerably worse than almost anything else you could buy at the same inflated price. So you're suggestion that they sound damn good at a mid range price seems like you haven't done much comparison listening. You basically hit a bullseye on Bose greatest weakness as a product and called it a strength. Spend 5 minutes with Google "best speakers for $X" where X is what you spent on those over priced Bose speakers and you'll find a giant pile of simultaneously better and cheaper equipment. Take the $350 you spent on pretty much anything Bose and get some Audioengine A5's instead.

Re:Monster expensive?

[beernutz]

Monster 1 meter hdmi cable = $99

Monoprice 6Ft hdmi cable = $2.78

So, yes, monster cables are EXTREMELY expensive.

Re:M.I.T. already has an $8 billion endowment.

[ChrisMaple]

Bose has a long relationship with MIT. For many years he competently taught a class on acoustics, using Leo Beranek's text.