The Apple Watch sales ban in the U.S. due to the infringement of Masimo’s patents is not the reason why Joe Kiani, former CEO of the firm, was removed from his position, but the immediate thought would be that the Cupertino giant might have been responsible for his resignation. Quite the contrary, as Kiani’s removal was a decision taken by Masimo’s shareholders following a business skirmish with Politan Capital Management.
Shareholders decided to remove Joe Kiani from his Chief Executive position following a proxy battle with activist hedge fund
With the removal of Kiani as Chief Executive, Michelle Brennan, who is a long-time healthcare executive, has been named Masimo’s interim CEO. Reuters reports that Brennan was nominated by Politan Capital Management for Masimo’s board in 2023, along with the activist hedge fund founder, Quentin Koffey. The proxy battle ensued after Masimo’s $1 billion acquisition of Sound United, prompting Politan Capital Management, which has a 9 percent stake in the health technology firm, to remove Kiani as CEO.
Kiani has reportedly said in the past that he would quit as CEO and sell his shares currently valued at around $500 million if investors replaced him with a Politan nominee. With the Chief Executive position being filled by someone else, it will interesting to see how the saga between Masimo and Apple plays out. Kiani previously said that he would be willing to settle with Apple, but it appears that the latter may not be thrilled to pay a royalty that could generate cash flow for its rival in the millions.
Politan has said it will not oppose the re-election of Joe Kiani, who was previously said to have spent $100 million in the patent violation battle against Apple. Sadly, the report does not mention what fresh steps Masimo’s newly appointed CEO, Michelle Brennan, will take, but if it results in future talks with Apple regarding the patent infringements, we will not be surprised in the least.
News Source: Reuters
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
Follow Wccftech on Google to get more of our news coverage in your feeds.
