2017/11/30 19:57:58
FrankDeinzer
After being shocked by the latest Cakewalk announcement I did some background research on Gibson Brands itself. What I came across is this, two month old, Moody's company rating:  www.moodys.com/research/Moodys-downgrades-Gibsons-CFR-to-Caa3-outlook-negative--PR_371298
 
This Caa3 rating does not inspire confidence according to  en.wikipedia.org/wiki/Bond_credit_rating
For me, it looks like Gibson is in serious trouble and it gets worse year by year (www.moodys.com/credit-ratings/Gibson-Brands-Inc-credit-rating-815100778 - no need to register, just close the pop-up).
 
Frank
2017/11/30 21:15:38
tlw
Gibson have been in serious financial trouble for quite a while.
 
It's possible - even likely - the company will be unable to repay its creditors on time next year and, as you've said, Gibson Brand's credit rating is poor so borrowing more to tide them over may not be possible.
 
Gibson Brands may well be heading for bankruptcy. What happens then will depend on whether a reduced Gibson operation can trade out of difficulties and/or who might be interested in picking up bits of the company at bankruptcy sales prices. I suspect guitars with the Gibson name on them may well survive, as might some of the companies currently owned by Gibson. Just not under the current management. Which some might regard as not a bad thing.
 
Parts of the guitar/musical instrument/hardware industry has been facing hard times generally for a while now. Which probably explains Gibson Brands' purchase of consumer electronics companies like Onkyo and Royal Philips in the hope of diversifying.
 
As far as Cakewalk is concerned, Roland were in considerable financial trouble when they sold Cakewalk to Gibson. Being acquired by Gibson almost certainly granted Cakewalk several years they wouldn't have had if Roland hadn't been able to sell the company.
2017/11/30 21:24:01
Audioicon
tlw
Gibson have been in serious financial trouble for quite a while.
 
It's possible - even likely - the company will be unable to repay its creditors on time next year and, as you've said, Gibson Brand's credit rating is poor so borrowing more to tide them over may not be possible.
 
Gibson Brands may well be heading for bankruptcy. What happens then will depend on whether a reduced Gibson operation can trade out of difficulties and/or who might be interested in picking up bits of the company at bankruptcy sales prices. I suspect guitars with the Gibson name on them may well survive, as might some of the companies currently owned by Gibson. Just not under the current management. Which some might regard as not a bad thing.
 
Parts of the guitar/musical instrument/hardware industry has been facing hard times generally for a while now. Which probably explains Gibson Brands' purchase of consumer electronics companies like Onkyo and Royal Philips in the hope of diversifying.
 
As far as Cakewalk is concerned, Roland were in considerable financial trouble when they sold Cakewalk to Gibson. Being acquired by Gibson almost certainly granted Cakewalk several years they wouldn't have had if Roland hadn't been able to sell the company.



I am a Gibson creditor and I want my money back:
These Cakewalk users don't pay much. 


2017/11/30 21:38:21
stratman70
Well their guitars, especially acoustic are frickin terrible. Not to mention overpriced. They have zero QC. You never know what you will get.
KARMA...............
2017/11/30 21:42:12
BenMMusTech
A Gibson guitar...the really great ones made before the move to wherever they're made now, will become the new Stradivarius IMO. The reason Gibson is struggling is the death of rock and roll...the guitar isn't a tool for rebelling, expression or indeed girl magnet ;) it was - but in hindsight, betting an entire industry on spotty faced teens continuing to buy The Guitar was always going to end this way. Music trends and music technology trends change. So anyone with a Les Paul made in the U.S...keep it, it is an investment that will only grow. If you have a Jimmy Page Les Paul, or indeed a Les Paul - Les Paul congratulations, you now own the equivalent of a contemporary Picasso or something similar.
 
Rock and roll is dead...long live rock and roll!     
2017/11/30 21:45:13
Audioicon
BenMMusTech
the guitar isn't a tool for rebelling, expression or indeed girl magnet ;)  


Sorry, I am a bit lost here but isn't that what Cakewalk is for?
Getting attraction?

Gibson wanted to Replace it's Guitars with Cakewalk. :)



2017/11/30 21:57:16
Bflat5
stratman70
Well their guitars, especially acoustic are frickin terrible. Not to mention overpriced. They have zero QC. You never know what you will get.
KARMA...............




I always wanted a LPC, Black with gold hardware. Absolutely beautiful guitars. I finally decided to buy one online several years ago. When it arrived the first thing I noticed was the neck was so unbelievably thick it was ridiculous.
 
Then I noticed pits in the paint, red glue all over the white binding, the pickguard edges were rough, jagged and sharp. And somehow that tree trunk of a neck had a twist in it. There was even paint missing under the pickguard.
 
How that travesty ever made it out of the factory is beyond me.
 
The funny thing is about 2 weeks later I received an email from Gibson boasting their strict quality control.
2017/11/30 21:59:03
thedukewestern
Rock and Roll Its not dead as long as Im not
2017/11/30 22:01:56
batsbrew
BenMMusTech
A Gibson guitar...the really great ones made before the move to wherever they're made now, will become the new Stradivarius IMO. 



i can do everything i need...
without a gibson.
 
and have for 35 years or so......
 
carrying on.
 
2017/11/30 22:14:02
michaelhanson
BenMMusTech
A Gibson guitar...the really great ones made before the move to wherever they're made now, will become the new Stradivarius IMO. The reason Gibson is struggling is the death of rock and roll...the guitar isn't a tool for rebelling, expression or indeed girl magnet ;) it was - but in hindsight, betting an entire industry on spotty faced teens continuing to buy The Guitar was always going to end this way. Music trends and music technology trends change. So anyone with a Les Paul made in the U.S...keep it, it is an investment that will only grow. If you have a Jimmy Page Les Paul, or indeed a Les Paul - Les Paul congratulations, you now own the equivalent of a contemporary Picasso or something similar.
 
Rock and roll is dead...long live rock and roll!     




Yep, guitar bands are on their way out.  Seems like I heard that one before.  
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