#1
Hello everyone. This probably has an obvious answer that I fail to see.

Why were Fender and Gibson bought by bigger companies in the late 60's and early 70's? They were doing really well on their own up until then, competition from the east was still far behind in terms of quality, and guitar music of the 60's suggests that demand was high. What led to them selling their companies?

Or was it supposed to be a way of expanding business, rather than "giving it up" to another company?

Please explain. Thanks in advance.
#2
I guess the CEO's wanted money. Simple as that.
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#4
i think that in the '60s gibson were struggling to market their guitars because they didn't fit in with the sound that was popular at the time.. that wouldn't explain why fender sold to CBS though..
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#5
A lot of times, when a private business is successful like that, the owner(s) can sell it for enough to become independently wealthy. When you've worked hard your whole life it's pretty difficult to turn that down.
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#6
Early retirement?

Also if the demand is high, they might sell their company because that company would be better equipped to meet high demand.
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#8
I can't say why Gibson was sold, as by that time it was a very old company and Orville Gibson was long since dead. It had probably gone through a few hands before the late 60's. But as for Fender, Leo Fender was not in the best of health and the company had grown too large - physically - for him to oversee it the way he wanted. Leo Fender later remarked that by the time he sold the company, it took him at least an hour to lock all of the doors at the end of the day. He signed a non-competition agreement with CBS when he sold the company, so he was not able to produce instruments until it wore out. Once it did, he and Forrest White (original Fender employee) quickly formed Music Man. Leo Fender later quit to form G&L (With George Fullerton - another original Fender employee). Leo Fender remained with G&L until he died.
#9
Quote by Even Bigger D
A lot of times, when a private business is successful like that, the owner(s) can sell it for enough to become independently wealthy. When you've worked hard your whole life it's pretty difficult to turn that down.


that's what i'd have thought, too. Could be wrong, though.
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#10
Because around this time, it became less about providing quality instruments to the musicians, and more about the money. It's why Leo Fender left to form G&L with George Fullerton and Dale Hyatt.