FENDER MUSICAL INSTRUMENTS ANNOUNCES A CHANGE IN OWNERSHIP

Discussion in 'Bad Dog Cafe' started by Bruxist, Jan 27, 2020.

  1. Bruxist

    Bruxist Friend of Leo's

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  2. jhundt

    jhundt Doctor of Teleocity

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    just saw that on another post. Very interesting, I guess. I have several Fenders but I haven't bought a new one ever, and the newest one I have (a Japanese 1980) was given to me. Do people still buy Fenders because they are made by Fender? It must be a very tough market for them these days.
     
  3. VillainSean

    VillainSean Tele-Meister

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    Guitar Center is still filled with them ;) I do buy new Fenders on occasion, usually the limited edition & Custom Shop models.
     
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  4. warrent

    warrent Friend of Leo's

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    It might be a tough market but they are the largest guitar company in the world.
     
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  5. beyer160

    beyer160 Friend of Leo's

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    This is from the guy whose company is selling their shares to the new majority shareholder, but it's always nice to hear what the suits really think about the companies they own.
     
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  6. Bill

    Bill Poster Extraordinaire Ad Free Member

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    Nowhere does the word “guitar” or “amp” appear from management. They could be selling beer, insurance, or vibrators.

    And maybe should be.
     
  7. jhundt

    jhundt Doctor of Teleocity

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    doesn't seem to be going so well, though...
     
  8. jhundt

    jhundt Doctor of Teleocity

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    ah yes - Guitar Center... I haven't heard a story about them going bankrupt for at least three weeks!
     
  9. OldPup

    OldPup Tele-Meister

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    I bought an AmPro Tele a couple of years back and it's one of my favorite guitars. Not saying you got to love what they're making today. And I sure wouldn't mind owning some vintage Fender gear - choice selections from every era - but there is a market for what they are making at all price points. And thank God for that. For example, it's much easier and less intimidating for those with a burgeoning interest in making music with guitars to walk into a Guitar Center, browse new gear, and get a good instrument. They don't care about nitro finish or the fact that wiring ain't what it was when you were in your heyday. Plenty of people just care about playing and learning. Not everyone has cultivated the requisite knowledge to go buy gear with confidence in the secondhand market. I'm so thankful there is a viable business model that will allow guitar music to be at the fingertips of the masses.
     
  10. Dan German

    Dan German Poster Extraordinaire Silver Supporter

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    “Since 2012 we’ve deployed significant resources to reinvigorate this iconic lifestyle brand"

    Under Henry J, Gibson became a purveyor of "Lifestyle Products" (their words, not mine). Just sayin'...
     
  11. Lawdawg

    Lawdawg Tele-Holic

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    At least on its face, the transaction strikes me as a healthy sign. Servco has been an investor in Fender for decades. They brought in an equity investor, TPG, that they are now buying out. Typically that means that the reinvestment strategy has worked and has generated sufficient capital to buy out the investor. Obviously no way to know for sure, but that would be my best guess.

    Generally, I like the moves Fender has been making the past 5 -6 years. Just my $.02 but most of the new models they've released represent improvements to the prior lines.
     
  12. Boil

    Boil Tele-Holic

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  13. warrent

    warrent Friend of Leo's

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    How isn't it going well?
    Their sales have been increasing year over year for at least the last 5 or 6 years. They currently do a turnover of $700 million plus compared to Gibson's $300 million.
     
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  14. Dacious

    Dacious Poster Extraordinaire

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    Fender is the definition of healthy. Watch what happens next - leveraged buyouts can be interesting but at least it appears to be a bloodless coup.
     
  15. Allan Allan

    Allan Allan Tele-Meister

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    "Servco’s relationship with Fender began in the 50s, when it became a dealer of its products."

    Pretty sure those early 50's teles are already skyrocketed. Servo and Fender go way back.
     
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  16. 2HBStrat

    2HBStrat Tele-Meister

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    Somehow I think Fender will be okay...
     
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  17. KT89

    KT89 Tele-Meister

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    The thing I don't think most people on this site understand is that instagram is king for the 13-30 demographic, and Fender is one of the top 3 brands I see on instagram. Gibson may have tried and failed at the "lifestyle brand" thing but Fender is fantastic at it. IMO they've really solidified themselves as the archetype image company for the term "electric guitar" in the last few years as far as people in my age group are concerned. As long as the new owners keep them going in the direction they're going, there will be no shortage of hot Tele action for the forseeable future.

    TL;DR: Fender has built up a lot of good image credit the last few years and it would take some big mistakes to hurt them in a major way at this point.
     
  18. jhundt

    jhundt Doctor of Teleocity

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    It is quite possible - even quite likely - that I do not understand business well enough to see how brilliantly well Fender is performing these days.

    I don't really pay much attention. I know that they make about a thousand different models of electric guitars these days. They make retro variations of guitars they never even made. But hey - that's what you do when you are a life-style merchandiser.

    I know that they require an awful lot of up-front commitment from a small local shop to be allowed to sell the Fender brand.

    I know there must be millions of unsold guitars floating around, as every year new 'improved' models of the same three or four 1950's designs are introduced and promoted. And I see the same guitars hanging in the music store year after year.

    I know that over the last 10 years or so I have not met a kid who is the least bit interested in playing the electric guitar.

    But that's all about the business of selling products, and I am not really much interested in that.

    So yeah... hurrah for whoever it is that now wants to own the company that used to build Fender guitars! Forward into the future!
     
  19. gregulator450

    gregulator450 Tele-Meister

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    this was exactly my first thought when I saw the words "lifestyle brand".
     
  20. gregulator450

    gregulator450 Tele-Meister

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    Knowing little of Fender's business side, this seems to be the most plausible explanation I have seen yet.
     
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