Critic's Corner Discuss a review. Provide constructive feedback. Talk to the industry.

---

[ Follow Ups ] [ Post Followup ] Thread: [ Display  All  Email ] [ Critic's Corner ]

---

[ Alert Moderator ]

---

Ted Green's Strat-a-Gee posts on the MQA situation +MQA's statement

Posted by John Marks on April 8, 2023 at 07:41:36

MQA Limited has issued the following statement about the situation...

Following the recent positive reception to MQA's latest technology (SCL6), there has been increased international interest in buying MQA Ltd. At the same time, MQA's main financial backer is seeking an exit. In order to be in the best position to pursue market opportunities and expedite this process, the company has undergone a restructuring initiative, which includes entering into administration and is comparable to Chapter 11 in the US.

During this process, MQA continues to trade as usual alongside its partners.

We won't be commenting further while negotiations take place.

MQA Limited, Company prepared statement

# # #

As usual, Ted had done an excellent job of researching and explaining.

What I find interesting is that the UK proceeding is analogized to a US Bankruptcy Reorganization (except the time in which the going-forward Plan has to be presented is 8 weeks and not 120 days), rather than a Liquidation.

That said, if MQA's main financial backer had give notice some time ago, my guess is that there will be an auction, and that the assets will sell for a non-trivial amount of money. There is a lot of money out there, and MQA is not worthless. Ironically, this happens right as MQA's SCL6 Codec is just finding its legs. SCL6, unlike MQA-Original, can work wirelessly! Game changer.

Here's an AMAZING writeup on SCL6, which also has VERY NECESSARY information about MQA's foundational backstory, with hugely important info about how MQA came about, and the $$$ money issues:

https://audioxpress.com/article/how-many-bits-would-you-like-with-your-music-the-case-of-the-scl6-scalable-codec

Let me give an example of why I think there will be a buyer for MQA. (NOTE: I am not suggesting that I think that Sonos will have an interest in acquiring MQA.) Two years or so ago it popped up on my radar screen that Sonos had spent $100 MILLION to buy a startup loudspeaker-driver company in Europe called Mayht. $100 million. That must be some great little driver!!!

My high-level contacts in the CE industry tell me that the backstairs chatter of current speculation is that, for example, any of the Chinese CE contract manufacturers whose names end in -COMM could pick MQA up for a fraction of what it cost to build, and radically lower the operating costs.

It remains to be seen what positions the major record labels such as Universal, Sony, and Warner will take, because I am told that there are still major back-catalog digital remastering operations ongoing.

I think the most important take-away is Bob Stuart's statement, which I 100% believe to be true, that "We just did what the recording industry said they needed, and was asking us to do."

Why some people have made a profession of getting their panties in a wad over the music business' desire to get paid accurately for the use of its products, so they can pay the musicians and songwriters and technical people, is beyond me.

Have a nice day!

john

• https://www.strata-gee.com/mqa-limited-enters-administration   (Open in New Window)

This post is made possible by the generous support of people like you and our sponsors:

Sonic Craft

---

[ Top of Page ] [ Contact Us ] [ Support/Wish List ] [ Copyright © 2025, Audio Asylum, all rights reserved ]

---

[ General ] [ Speakers ] [ Tubes ] [ Vinyl ] [ Digital ] [ Hi-Rez ] [ Video Asylum ] [ Cables ] [ Tweaks/DIY ] [ Music ] [ Films ]

---