Who Should Acquire Gibson? Your thoughts?

[Garrison314]

I hope some American businessmen buy it and hire top luthiers to run it the way they see fit. There is already too much competition in the low-end market but the right people could make a dent in the $2,000 -$5,000 range.

[JBCROTTY]

Originally Posted by rokdog49

I would love to offer a comment, but my question, and I think the single most important one is "who would be running the ship?"
Looking at the company, the heritage and the product, it would take someone from within the industry who has an understanding of Gibson in every aspect.
That would likely mean someone from the inside.

I disagree. They need someone from outside, someone who brings fresh ideas and a new mindset, someone who is not biased or polluted by the "Gibson heritage." Andy Powers did not come from within Taylor - he had no issues understanding the company or honoring the culture and history of that company while bringing a fresh, renewed focus on building and craftsmanship. He is designing and building stellar products that people want to buy.

Gibson needs the same thing - they need someone who can honor the Gibson heritage and history without being enslaved by that history and tradition. They need someone who will be absolutely maniacally focused on designing and building products - guitars - that people want to buy. The history of Gibson will not save it. Their celebrity endorsers will not save it. The only thing that will save Gibson is if they start really listening to their customers, bring fresh ideas to attract new customers, and get back to waking up every single day worried about only one thing - building great guitars.

[fazool]

I think the most beautiful poetic justice would be for the families of John Thomas' "Kalamazoo Gals" pooled funding and owned it.

They were the hidden heroes who saved the company once and were denied.

I'd love to see them all own it.

*THAT* would be justice.

[greenshoe]

The original poster who mentioned Yamaha would make a lot of sense, assuming Gibson does get sold and not simply reorganized.

There is a precedent for Yamaha acquiring historic companies in trouble: Bosendorfer pianos in Austria (one of the most renowned makers of concert grand pianos). They kept the name and they're still making them in Austria as far as I know.

Gibson had acquired a few electronics companies - if there's any company that knows electronics and can do a better job managing them it's Yamaha.

[HodgdonExtreme]

Originally Posted by JBCROTTY

Gibson has to figure out a way to get out from under the debt load they are carrying - no acquirer will take on that level of debt.

Isn't that the entire purpose of Chapter 11 proceedings??

[nitram]

Someone with deep pockets and an interest in history and integrity might take it on and convince Ren Ferguson to help preserve an American icon.
The man knows the culture and the technology to pare this thing back and make it righteous.He made it work once....

[Athens]

Originally Posted by HodgdonExtreme

Isn't that the entire purpose of Chapter 11 proceedings??

Yes, exactly.

And for all of you mentioning investment groups, keep in mind the original poster suggested it be someone already in the music space. I think investors have screwed up enough guitar companies already.

[Placida]

Maybe Guitar Center will buy Gibson and turn it into the house brand.

[Rmz76]

Originally Posted by Charmed Life Picks

I've been pondering this. Assuming Gibson goes on the chopping block, I'd prefer the acquiring firm to already be in the music market space.

If someone had deep enough pockets to acquire the core Gibson and Epiphone business, who would you think?

My vote is Yamaha, for the following reasons:

I had a thought that Yamaha would be a good candidate to acquire Gibson, if the Gibby models remained Made in USA. I say this for several reasons:

1) Absolute fanatics about quality for anything that bears their logo
2) Huge facilities already in place in China which could be geared up to make Epiphones.
3) No outside vendors. As I understand it, all Yammie plants use only their own employees.
4) Very deep financial pockets; very stable institution
5) Still privately held (I believe), thus not driven by the quarterly report and immediate returns. Like Honda or Toyota, they invest for the long haul and are typically more patient for their ROI.

I'm sure many (most?) will disagree. It certainly would be a culture shift from onshore to offshore ownership.

My two cents. Any other thoughts?

scott memmer

Taylor
If Taylor has any interest in Gibson, that interest is probably being driven by the electric guitar side of Gibson. I don't think Taylor would be a good fit because Taylor's approach to building guitars is about moving forward, reducing production cost through better factory automation and finding non-traditional ways to build great guitars. Taylor's acoustics outsell Gibson acoustics so they wouldn't have much incentive to keep Gibson Montana around. They would more likely take the Gibson acoustic patents and recreate the J-45, J-200, etc... as completely reworked Taylor models. From listening to Andy Power's interviewed and grasping his philosophy on guitar design, I think at a fundamental level he feels the traditional design is inferior to what Taylor is doing. Perhaps Gibson's traditional design of the J-45 being the one he understands the least. So I think the acoustic lineup would see a complete overhaul if Taylor acquired Gibson.

Martin
Martin would be a better fit. Their CEO series has poked a bit of fun at Gibson's traditional designs over the years and Martin like Taylor is missing an electric guitar division. I think if Martin were to acquire Gibson they would be more likely to pay respect to the traditional acoustic designs than Taylor and would be more likely to keep the Gibson brand name around.

Foreign acquisiton
Of the Japanese companies, I think Yamaha and Ibanez are contenders but the price would have to be right.

Likely buyout scenario
I honestly think most big builders would see a Gibson acquisition as too big of a risk. Some changes have to be made at Gibson moving forward and I don't think Martin, Taylor, etc.. want to deal with PR backlash from Gibson fans.... More than likely, it would be foreign or local investment firm that buys out Gibson. Perhaps Bain Capital, etc...

[Steadfastly]

Originally Posted by Nyghthawk

just my.02 but I would like to see a significant change in management style. The current bunch couldn't manage a two car funeral IMHO. Lime green j-45's and pastel pink Hummingbirds. Sheesh!

Right. I can see those colours on beginner guitars to try and catch the eyes of kids but not on top notch models like that.

Moves like that show me how desperate they were to increase sales and market share. They were even willing to try stupid ideas.

[Seagull S6]

It sure doesn't look good. There are 100's if not 1000's of American companies that were once American manufacturing icons and went the way of the Dodo bird and are now just names that are licensed out to whoever wants to use those names for offshore Manufactured products.

All the wishful thinking as in "if we could just get the right people in to run the company" etc. made zero difference for those companies. With King Henry's financial genius running up something like $500 Million in debt and his uncanny ability to alienate his workforce and customers and a declining guitar market, there isn't much left of Gibson's former self that is viable anymore. A sad day indeed.

Anyway, my thoughts.......................

[Jukie]

Originally Posted by jpd

And keep it separate from the rest of Gibsons holdings, including the electric shop in Tennessee. Wouldn't it be something if Larrivee bid on it? Fine company, great facility on the west coast(Oxnard California), great deal of knowledge with acoustics.....a winner

I was thinking about Larrive as well. Or what about Godin?

[zombywoof]

Nobody! At least that is what I hope. I am also assuming Gibson will not be put on the chopping block just see a change in management.

[posternutbag]

I am sure that Two Old Hippies is watching this very carefully. They have acquired Breedlove and Weber in an attempt to add musical instruments to their "lifestyle brand". Gibson is already a lifestyle brand. This does not represent a "best case scenario" but rather a possibility, IF Gibson can restructure their debt. I can't imagine something like Bain swooping in, there isn't enough meat left on the bone for the really big dogs to leverage.

[mstuartev]

Meh. Yamaha?

I’d think Harley Davidson would be a better fit