Fender IPO

[Rip Topaz]

it should be noted that Weston Presidio also owns a good sized stake in Guitar Center and that Fender earns about 15 or so % of their annual income/sales through GC.

Thanks for the interesting comments, folks

That makes sense. Hopefully GC won't have a hand in destroying Fender's name like they did to Acoustic.

 

[SolarMan]

That makes sense. Hopefully GC won't have a hand in destroying Fender's name like they did to Acoustic.

???

Correct me if I am wrong -

As far as I know Acoustic was a dead brand and GC bought the rights to use the name and trademark dress. The name was already destroyed, but maybe GC destroyeded it?

Fender doesn't need GC at all - those guitars would have been sold from other retailers regardless.

The Fender/GC relationship is a Pimped relationship. Not a Bondage relationship.

 

[smcd]

I would actually say there's very little, if any, similarity between the business positions of the two companies. HD's net income in 2011 was ~$600mil, Fender's was $19mil. Fender's product range is far wider than HD's, and Fender has lots of non-US products/brands. Fender is nearly half owned by a private equity firm. HD sold 235K bikes worldwide last year -- I suspect Fender sold dramatically higher numbers of its various products. When HD said they were going to focus on their core strengths, you could likely guess what that means -- but Fender just wants to expand (and with this IPO, pay off debt) -- there's nothing to suggest that they see a need to focus (or re-focus) on their core product quality.

I've already pointed out the similarities between the two companies. Their situations are very similar on a comprehensive scale. Both products are iconic, classic, uniquely American, and have a strong/valuable brand identity. There is no point in focusing on details like what the sales figures are, how much the product costs, or what the nickel content is on the fasteners they use.

 

[dhsierra1]

???

Correct me if I am wrong -

As far as I know Acoustic was a dead brand and GC bought the rights to use the name and trademark dress. The name was already destroyed, but maybe GC destroyeded it?

Fender doesn't need GC at all - those guitars would have been sold from other retailers regardless.

The Fender/GC relationship is a Pimped relationship. Not a Bondage relationship.

IIRC, yes, the Acoustic name was kaput.

As far as pimped vs bondage , check out the point made by the OP in another Fender IPO thread that just popped up:

http://www.talkbass.com/forum/f8/fender-ipo-862124/

 

[Rip Topaz]

Then I stand corrected. I was speaking more of the NAME Acoustic losing a bit of respect due to what they released under the same name.

But corrected nonetheless.

 

[SolarMan]

IIRC, yes, the Acoustic name was kaput.

As far as pimped vs bondage , check out the point made by the OP in another Fender IPO thread that just popped up:

http://www.talkbass.com/forum/f8/fender-ipo-862124/

Thanks, I saw that thread -

GC has a sucking chest wound - Fender is still king of the hill

What am I missing?

 

[marmadaddy]

I've already pointed out the similarities between the two companies. Their situations are very similar on a comprehensive scale. Both products are iconic, classic, uniquely American, and have a strong/valuable brand identity. There is no point in focusing on details like what the sales figures are, how much the product costs, or what the nickel content is on the fasteners they use.

You pointed out brand similarities, not business positions. One is about marketing, the other is about accounting.

 

[dhsierra1]

Thanks, I saw that thread -

GC has a sucking chest wound - Fender is still king of the hill

What am I missing?

trying to figure that out myself

My guess is it's some high finance/accounting Wall Street shenanigans, but I'm no finance/investment expert by a long shot.

 

[dhsierra1]

Then I stand corrected. I was speaking more of the NAME Acoustic losing a bit of respect due to what they released under the same name.

But corrected nonetheless.

weren't there a few attempts to revive Acoustic after the original ACC went under and before GC finally got the rights?