Gibson axes Cakewalk /Sonar

[SJ_Digriz]

neither is Gibson, but they keep buying companies in various industries hoping they will eventually accidently make money in one.

[ghettosynth]

What hel does this mean anyway: "The decision was made to better align with the company’s acquisition strategy that is heavily focused on growth in the global consumer electronics audio business under the Philips brand." ?

Pay attention to the words that matter: "heavily focused on growth" means that Cakewalk wasn't growing.

Cakewalk isn't in the "global consumer electronics audio business" (or is it?)

I wasn't sure whether or not that was relevant. It could be simply "Cakewalk's not making any money," or, a slightly more charitable interpretation could be "Cakewalk's not making any money and it's not really where our core competency lies."

If Cakewalk were making any money though, I doubt they would be getting the ax.

[SJ_Digriz]

Yeah i got called on the carpet for a simular assertion I made earlier in this thread but the question does need to be asked:
How long will it be before the next shoe drops?

Cakewalk was struggling to begin with. So it's no surprise Gibson couldn't stomach the red ink or figure out how to leverage it. Gibson doesn't exactly have a chicken shit to chicken salad track record .. .more of a chicken salad kept until it expires, so throw it out track record.

Logic is on subsidy. The Borgz, Presonus, Live etc.. are all seeming still a going concern. But, I do wonder how long that will last as the dumbification of everything continues.

[ghettosynth]

I'm going to be that guy. IMNSHO, the safest DAW to have around is Reaper. I would imagine that if Frankel decided to jump ship that it would go open source, and even if it didn't, it's pure serial and has consistently been the most reliable DAW for me by a very wide margin.

[flugel45]

"May 2017 marks Cakewalk’s 30th Anniversary, so we’re throwing a year-long party—and everyone’s invited!"

Was signed: Craig Anderton

Source:

http://blog.cakewalk.com/tag/craig-anderton/

Not sure what your point is here. Gibson fired Anderton a few weeks ago....

[GreyLion]

I'm a little too lazy to look up all the links, but I remember reading articles about what an incompetent egomaniac the Gibson CEO is. They got raided years ago for using illegal wood in their guitars, and it's widely known that their entire guitar line has turned to sh*t within the last decade. They've also blown up their Custom Shop manufacturing, apparently.

Frankly, it looks like one of those companies where the guys at the top are looting it down to the bone and gristle and will walk away laughing with millions from their golden parachutes.

Sonar is just a drop in the bucket for them.

[fmr]

I'm going to be that guy. IMNSHO, the safest DAW to have around is Reaper. I would imagine that if Frankel decided to jump ship that it would go open source, and even if it didn't, it's pure serial and has consistently been the most reliable DAW for me by a very wide margin.

That I agree with you. I would just add another one: Cubase

Just because Yamaha isn't afraid of losing money (they didn't up to now, and they did lost serious money in several projects) and because Cubase has been consistently improved. Defintely, Yamaha is a good parent company (has been consistently, they also saved Korg once). Even when they bought SCI, they put the investment to good use.

Logic too, following the same Logic (Apple is not using it to make money, at least directly - they use it as an ad to seel computers). However, Apple is more into mobile these days, so that can change.

Ableton bought Cycling'74 a little while ago, so, they should not be suffocation (at least right now). Therefore, Live seems to not be in danger, for the moment. But we never know.

Digital Performer is a long case of an application that, although having fall in almost oblivion, and definitely not selling by the thousands, still is being supported and developed. Somehow, it seems like MOTU doesn't care to make money with it, either (or the small amount they make is enough for them).

And I'd say that's pretty much it.

OTOH, Gibson track is a consistent history of failing grief and abandon.

[xbitz]

can't see any surprise here

What's lower than a B? The financial rating of Gibson Brands Inc.

The famed guitar maker had its rating lowered to Caa3, nine notches into junk territory, with a negative outlook, as maturity of $520 million in debt approaches.

The privately-held company will need to refinance the debt before July 2018 or it faces a likely default. Moody's Investors Service Inc. said last week that there's "uncertainty" about the company's ability to refinance this debt and that its capital structure is "unsustainable." Gibson didn't respond to request for comment.

Although Gibson's finances are the most stressed, according the rating firm, it's not the only music company that's playing the blues.

In December, Moody's moved piano maker Steinway Music Group to Caa1, from B2, because of the company's highly-leveraged balance sheet. The company, owned by Paulson & Co., has a $300 million senior secured term loan due in 2019 and is leveraged at 8 times debt to Ebitda (earnings before interest, tax, depreciation and amortization), according to Moody's.

- https://www.thestreet.com/story/1428061 ... -debt.html

[fmr]

can't see any surprise here

What's lower than a B? The financial rating of Gibson Brands Inc.

The famed guitar maker had its rating lowered to Caa3, nine notches into junk territory, with a negative outlook, as maturity of $520 million in debt approaches.

The privately-held company will need to refinance the debt before July 2018 or it faces a likely default. Moody's Investors Service Inc. said last week that there's "uncertainty" about the company's ability to refinance this debt and that its capital structure is "unsustainable." Gibson didn't respond to request for comment.

Although Gibson's finances are the most stressed, according the rating firm, it's not the only music company that's playing the blues.

In December, Moody's moved piano maker Steinway Music Group to Caa1, from B2, because of the company's highly-leveraged balance sheet. The company, owned by Paulson & Co., has a $300 million senior secured term loan due in 2019 and is leveraged at 8 times debt to Ebitda (earnings before interest, tax, depreciation and amortization), according to Moody's.

- https://www.thestreet.com/story/1428061 ... -debt.html

The mobile shit is burying the entire industry. And it has a name...

[aMUSEd]

Time to cancel my subscription then..?!

That's odd, why is this being left to users to do? You would think they would just have cancelled all payments forthwith, this makes it look like they are still hoping to rake in some more money from people who have not heard the news yet which is pretty unethical.

[SirkusPi]

I'm going to be that guy. IMNSHO, the safest DAW to have around is Reaper. I would imagine that if Frankel decided to jump ship that it would go open source, and even if it didn't, it's pure serial and has consistently been the most reliable DAW for me by a very wide margin.

Yeah, even though I'm on Logic, and very much doubt it is going anywhere soon, I've long wanted to learn Reaper too. It seems like a safe, stable, likely-to-last alternative, and is so reasonably priced that it feels prudent to go ahead and get familiar with it, so that I have some flexibility and am prepared should I finally grow completely fed up with Apple (or Logic otherwise becomes unavailable for some reason).

Of course, when there's no pressing need, it's hard to get motivated (as short-sighted as that laziness is).

[braj]

I haven't used Cakewalk products in a long time, but this is sad news, and I vow not to buy another Gibson product. Corporate bullshit "acquisition" what are they, Ferengi?

[Jim Roseberry]

The "problem" isn't necessarily Cakewalk.
When the company that owns you is half a billion in debt (and it's getting close to time to "pay the piper"), they're trying to consolidate and stop the hemorrhaging where-ever and how-ever possible.
Unfortunately, that leaves many in the lurch.

The Gibson corporate statement is gobbledygook... but they're basically saying we're not spending any more money on Cakewalk.
I don't think Cakewalk is the reason Gibson is in trouble.
Neither is the Memphis Factory (which is currently for sale)
The situation is a by-product of Gibson's bad business decisions.
ie: Putting crap robotic tuning on a classic/iconic heritage guitar (wondering why folks aren't buying them in large numbers)

Personally, I feel bad for the staff and their families...

[D-Fusion]

I am sad to see this news today being a Sonar user since early 2000 :/
I wish they would do the right thing for us and make a last version with Serial registration again like it used to be before.
Bought Cubase 9 this summer so i guess it is time to fire it up and get used to that now since you never know how long the Call home crap will work.

[Woodgardens]

"May 2017 marks Cakewalk’s 30th Anniversary, so we’re throwing a year-long party—and everyone’s invited!"

Was signed: Craig Anderton

Source:

http://blog.cakewalk.com/tag/craig-anderton/

Not sure what your point is here. Gibson fired Anderton a few weeks ago....

Oh but you are darn sure to attack the least relevant content of my comment though.. brave, but rather silly IMNSHO

Let me point it out for you: May 2017-May 2018 is a year exactly. A year of celebration... according to Sonar.

Who the spokesman of Sonar is -whatsoever- doesn't change the fact that we are talking about an OFFICIAL statement of Sonar regarded to the -then- future development of Sonar itself afaik.

However, correct me if I am wrong, it only makes Anderton's statement even more ironic.

That's why I posted it in the first place. Hope this helps!