If you're a musician, you've probably heard of Fender and would like to invest in Fender stock. It's one of the most popular music instrument companies in the world and is known for its guitars, basses, and amplifiers.
In this article, we'll give you an overview of the company and its history, as well as answer some common questions about Fender stock. Stay tuned because we'll also list some other musical instrument companies that are publicly traded so you can choose the best investment for you.
Can you invest in Fender stock?
The answer to this question is a little complicated. Fender, the guitar company, is not publicly traded on any major exchanges. This means that you can't buy shares of the company in the same way you might purchase stock in Apple or Google. The company was planning on making its company publicly traded but decided not to. Keep reading to learn more about why they might have changed their minds.
Overview of Fender and its history
The Fender Company is a well-known and reputable producer of musical instruments. They are known as 'The World's Leading Guitar Manufacturer'. It has a long history that dates back to 1943. The company started in a small Fullerton, California workshop. Leo Fender, a radio repairman, and an inventor made the move to musical instruments by default after playing with a friend's broken amplifier.
He formed K&F Manufacturing Corp a short time later, working with local musician Doc Kaufmann to produce a small run of amplifiers and lap steel guitars. After they went their separate ways a few years later, Fender kept on using his name and developed the original Princeton, Deluxe, and Professional amps.
This happened only 3 years later in 1946. In a new post-World War II era when robust, dependable, and loudly loud instrument amplification didn't yet exist. As a result, Fender's simple and elegant woodies were by far the finest amps of their time. They would go on to define guitar tone throughout the 1960s and 1970s.
In 1951, he invented the Telecaster guitar (originally known as the Broadcaster). The Telecaster was the first mass-produced solid-body electric guitar, and it revolutionized music-making. The Telecaster quickly became one of the most popular guitars in the world, and it's still in production today.
In 1954, Fender introduced the Stratocaster, a guitar that would define generations of guitars to come after its success. The thin matte finish and sleek body of the Stratocaster made it a joy to play. The contoured body and double cutaway design enhanced comfort and playability. The Stratocaster, which has been virtually unchanged in design since its introduction, is still the most popular and influential electric guitar ever created.
Sold to CBS
In 1965, Leo Fender sold the firm to CBS because of poor health. Fender Musical Instruments flourished throughout the next 20 years, but CBS' disconnect with the guitar community became apparent.
CBS couldn't tune up Fender
In the 1980s, CBS decided to get out of the non-broadcast media business. This opened the doors for Schultz to acquire the company. The decade-old guitar company was finally back in the hands of a smaller passionate team dedicated to helping musicians play their best music. Thus, William Schultz became company president and tried to recreate the brand's excellence in 1981. Their short-term business plan was based on boosting Fender's marketplace presence by leaps and bounds with better quality.
The start of Fender Musical Instruments Corporation (FMIC)
Schultz's acquisition of the brand did not come with equipment or buildings. It was just a purchase of the name brand (intellectual property) and the instrument designs. Schultz and his team set out to restore an iconic brand after the company's struggles were well-known. Luckily they had a connection with the employees, customers, and suppliers who had the same mission.
1980's Dream Factory
In 1985, Fender moved its headquarters and main U.S. factory to Corona, California, followed by a second plant in Ensenada. Shortly after, Fender began ramping up its influencer/celebrity marketing with the custom shop. This helped the company expand while also advertising to popular musical artists' fanbase as the go-to guitar brand. Therefore, a few popular guitarists collaborated within the custom shop that year including:
- Jimmy Page
- Eric Clapton
- Jeff Beck
- Merle Haggard
- Stevie Ray Vaughan
These items are limited edition, making fans feel more connected to their idol guitarist while associating the brand with their favorite music.
The Modern Musical Era
Fender has a long and impressive history that has shaped the sound of music for over 70 years. They continue to produce some of the best guitars in the world and remain a popular choice for musicians all over the globe. Fender is known for its high-quality products and its commitment to customer satisfaction.
The company is well known for its wide variety of guitars and guitar accessories. Fender offers a large range of products for both beginners and experienced musicians. Further, the company has a long history of innovation and is always looking for new ways to improve its products.
Fender now also has apps such as tuners and guitar lessons. Fender is a great choice for anyone looking for a high-quality musical instrument. If you're looking for a guitar, Fender is the way to go.
Does Fender have a stock?
No, the company had IPO plans but then canceled them. This has been upsetting for investors looking to gain ownership of this company. But stay tuned as we mention two companies that enthusiasts can invest in.
Is Fender a publicly-traded company?
No, Fender is not a publicly-traded company. It is a private company.
Who currently owns Fender?
Servco Pacific currently owns Fender after it was bought from TPG Capital in 2020. The ownership of this company has changed a lot throughout its history. With uncertainty around the guitar business' owners are reluctant to keep this investment long-term.
What music instrument companies are publicly traded?
Two popular music instrument companies that are publicly traded include:
- Yamaha Corporation (YAMCY)
- Sony Corporation (SNE)
These are just a few examples, and there are many more companies that offer music instruments as part of their product lines. If you're interested in investing in the industry, it's important to research which companies are performing well and have a solid financial standing.
Otherwise, you could end up with a portfolio full of unprofitable stocks. Let's dive deeper into these musical instrument stock plays. You might be surprised at some of the companies that are doing well in this industry.
Yamaha Corporation (Ticker Symbol: YAMCY)
Market Cap: 1.00T JPY
Yamaha is a Japanese company that produces a wide range of musical instruments. Although music instruments are just a small segment of Yamaha, investing in the stock will give you exposure to the sector.
The company has been in business since 1887 and is a well-known brand within the industry. Yamaha Corporation is the world's largest piano manufacturing company.
Sony Corporation (Ticker Symbol: SNE)
Market Cap: 14.89T
Sony Corporation is a Japanese multinational conglomerate corporation. The company is one of the leading manufacturers of electronic products for the consumer and professional markets. Sony is a well-known brand name and has a strong presence in the music industry.
The company's products include musical instruments, sound systems, and recording equipment. These are just two examples of companies that offer musical instruments as part of their product lines. As you can see, both companies are large and well-established.
Thus, if you're interested in investing in the industry, it's important to research which companies are performing well and have a solid financial standing.
Gibson Brands Inc. (Private Company)
Founded on October 10, 1902, Gibson is arguably the closest comparison to Fender. They are both specialized in guitars. They offer a competitive guitar learning app and a repair shop for broken guitars.
If you are a passionate guitarist looking to invest in a company like Fender, this might be an alternative for you. Unfortunately, Gibson Brands isn't publicly traded either but this popular guitar company deserved a quick mention in this article.
As you can see, there aren't many musical instrument companies that are publicly traded. There is a lot of money to be made when a company goes public, but it runs the risk of losing touch with the community of musical artists.
There will be a cross-culture of investors and guitarists for some individuals but for most customers, a brand that can truly relate with them is preferred. Looking back at Fender's history, CBS' large business background ended up hurting them more than it helped.
It was the small team of music enthusiasts and inventors that made Fender what it is today. Ultimately some companies are better off as private establishments than be at the mercy or blessing of investors' opinions.
Additionally, this allows Fender to focus on its craft of serving guitarists rather than executives and investors. If you'd like to make money from the brand, you can try buying and collecting some of their limited edition guitars. These items may appreciate and become a treasure for the right collectors. You can also just be a customer and advocate of the brand as well and not have any financial interest.
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