Gibson Sued for 50 Million

yeah I read that. I wasnt a fan of the looks of the robo-tuners but I heard they worked well.

$50 million seems like a lot?
 
yeah I read that. I wasnt a fan of the looks of the robo-tuners but I heard they worked well.

$50 million seems like a lot?


"The suit was filed by a Tronical, a German company that powers Gibson’s auto-tuning capabilities. That feature was a major focus for Gibson and its CEO, Henry Juszkiewicz, though guitar buyers didn’t quite warm to the concept"

The robo-tuners might have worked well...but IMO (and apparently that of many others as stated in the comment above)...I think it was a stupid move.
Why...?...because you don't fuck with something classic that's been accepted for many, many years.
There is an over-obsession with technology these days, with the "just because we can, we did" mentality...and some notion that "technology sells" always.
Well...they did it, and it didn't. :p



AFA the lawsuit....that's just a smart move to make because once it all goes into bankruptcy mode...they wouldn't be able to sue to get their money out.
They may still not see a penny from Gibson...I mean, if the money isn't there, no lawsuit is going to make it appear.
 
The only ones making money are the lawyers.

Yeah, robo-tuners were a colossal fail, but I understand Gibson's attempt to find a way to stem the collapse of guitar sales among Millenials and following generations. "You think they aren't picking up guitars because tuning is so hard???" was probably one of the discussions that led to the decision. I'd have thought these might have made sense as a small niche/option on a few models, certainly with no commitment to the future, i.e., a "trial balloon" period would have made more sense; but, clearly, strategy was not their strongest suit when facing what must look like pretty desparate times/odds.
 
yeah and technology companies have divisions seeking new markets, new applications for new income...which makes sense.

but the old players dont want robot stuff on their sacred vintage gear and the little beginner kids who cant tune a guitar are usually in the Hello Kitty Guitar section.

if tuning a guitar is too much effort ..... well ... maybe these things will eventually be on every guitar someday?
like tuners replacing pitch/tuning-forks.
 
I think the tuners were an okay idea (no idea if they worked, but to see Gibson trying to make progress and innovate was good). The main criticism I've heard of Gibson is they never update their (flawed) designs. Like the 16 degree headstock pulling strings out of tune and causing headstock breaks so easily. Even Epihpones went to 14 degree, which makes a pretty big difference with both issues. When they try to fix their design flaws, traditionalists get mad. It seems like the smart thing for them to do is create two lines. A traditional and modern line. Traditional has all the stuff found on the 50s models. The modern has improvements over that design. Their CEO seems really bad and seems to have no idea how to run a company. This lawsuit will probably amount to nothing since Gibson has no money, but they might have to give this tuning company money if/when they are forced to sell. Investors will likely own Gibson soon since Gibson can't service their debt. I heard in June a balloon payment is due and they can't make it, so we might see an investor or investment group take it over around then. It will be interesting to see what happens! If an investment group takes them over (a) create two lines for modern and traditionalist (b) fix QC issues. That should solve almost everything. They might have to move operations outside the US to do this, sadly, due to cost of living these days.
 
I think robo-tuners are a cool idea, and it's good to see these companies keep innovating.

Honestly, at <$200, there's no compelling reason that robo-tuners shouldn't start making their way into entry-level instruments and becoming ubiquitous.
I'm sure the first generation of acoustic pickup users weren't excited about drilling holes in their expensive instruments either.
 
yeah been chatting on that in the Prime section.. I needed help understanding the financial legal jargon.

Im guessing theres too much money to lose, so they will shuffle cash in and keep it floating, kind of like when they bailed out all the scam artists CEO and crooks during the Great Recession, Subprime Lending fiasco Govt bailout.

who knows?

as I get it their chess move was to open more and more stores, like WalMart, in every neighborhood, which I think flopped.
now they talk about Guitar Lessons being the saving idea, which I think will flop. (Fender is trying to do this too)

So there is a brotherhood of business ties right? behind GC and Fender and Gibson...they all work together, GC is the distribution show room and main customer for Fender and Gibson and many others.

IF GC goes under, then Online will rule, and Sam Ash....maybe some smaller chains and stores will be a place to pickup your online order?
 

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This is what happens when a hedge fund mgr. attempts to actually run a company.

That's funny, but it's actually what happens when hedge fund managers attempt to run a hedge fund, too. I think I once read 90% of hedgies fail and every year 1k open up and 1k shut down.
They grift rather than run a sustainable business.
 
"In a filing in U.S. Bankruptcy Court in Delaware, Gibson said the overseas consumer electronics business will be wound down, allowing it to re-focus on its core guitar-making and audio businesses."

Its 500 million debt is linked directly to its overseas consumer electronics biz.
 
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