4 ms·

Is there a known reason why a guitar maker bought up a bunch of high end audio companies? I’d like to hear the story behind this.

mikestew 8y ago
In summary, the impression I get is that the current CEO wants to be a businessman who runs a company that happens to make guitars, in contrast to wanting to run a guitar company. With the former, you could a bunch of debt-driven acquisitions that might, or might not be, a good buy. But now you're not just the CEO of a guitar company, you're the CEO of a conglomerate. Big swingin' dick, you are. In contrast to Martin, who has been making guitars, and the occasional mandolin or ukulele, for well over a hundred years. That's pretty much all they do, and as far as I can tell they're financially fit. Probably because Mr. Chris Martin is content running a guitar company. That's just my arm chair analysis. I otherwise have no idea what the hell Gibson wants with, say, Teac.
- wilsonnb 8y ago
  Martin also sells mostly or entirely acoustic instruments, not electric. I would guess that acoustic guitar sales have remained more consistent than electric guitar sales over time. Part (most?) of Gibson's problem is that the guitar just isn't as popular as it used to be.
- totalforge 8y ago
  You're correct. The CEO is a former hedge fund guy, who has purchased a number of companies, shut them down, and added the IP to a portfolio. If Gibson ends up with new leadership out of this they will have a chance.
gbraad 8y ago
they also acquired (and basically killed) Stanton, Deckadance, Cakewalk, etc... and HarmonyCentral.com
- Optimal_Persona 8y ago
  They've also applied their reverse Midas touch to Echoplex, Tobias Basses, Steinberger, Trace Elliot, and Amplified Music Products...
johnvanommen 8y ago
Guitar sales have been declining, so they're trying to diversify into other markets. The same reason they acquired music software companies. I wonder if Guitar Center played a role here? They've been struggling, and that may be impacting their suppliers: https://www.dailynews.com/2018/03/20/guitar-centers-1-billion-in-debt-reveals-truth-about-musical-tastes/ https://www.dailynews.com/2018/03/20/guitar-centers-1-billio...

mikestew 8y ago

In summary, the impression I get is that the current CEO wants to be a businessman who runs a company that happens to make guitars, in contrast to wanting to run a guitar company. With the former, you could a bunch of debt-driven acquisitions that might, or might not be, a good buy. But now you're not just the CEO of a guitar company, you're the CEO of a conglomerate. Big swingin' dick, you are. In contrast to Martin, who has been making guitars, and the occasional mandolin or ukulele, for well over a hundred years. That's pretty much all they do, and as far as I can tell they're financially fit. Probably because Mr. Chris Martin is content running a guitar company. That's just my arm chair analysis. I otherwise have no idea what the hell Gibson wants with, say, Teac.

wilsonnb 8y ago
Martin also sells mostly or entirely acoustic instruments, not electric. I would guess that acoustic guitar sales have remained more consistent than electric guitar sales over time. Part (most?) of Gibson's problem is that the guitar just isn't as popular as it used to be.
totalforge 8y ago
You're correct. The CEO is a former hedge fund guy, who has purchased a number of companies, shut them down, and added the IP to a portfolio. If Gibson ends up with new leadership out of this they will have a chance.

gbraad 8y ago

they also acquired (and basically killed) Stanton, Deckadance, Cakewalk, etc... and HarmonyCentral.com

Optimal_Persona 8y ago
They've also applied their reverse Midas touch to Echoplex, Tobias Basses, Steinberger, Trace Elliot, and Amplified Music Products...

johnvanommen 8y ago

Guitar sales have been declining, so they're trying to diversify into other markets. The same reason they acquired music software companies. I wonder if Guitar Center played a role here? They've been struggling, and that may be impacting their suppliers: https://www.dailynews.com/2018/03/20/guitar-centers-1-billion-in-debt-reveals-truth-about-musical-tastes/ https://www.dailynews.com/2018/03/20/guitar-centers-1-billio...