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Distinguished SOTW Member
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Discussion Starter #1
just saw a blurb on CNBC this morning about Gee-tar center being bought out...

More financial moves in the big box music dealer's area.

No idea if/how this might affect WW&BW...
 

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Forum Contributor 2015, SOTW Better late than neve
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cleger said:
They paid ~ 44 times operating income, so yeah they paid a high price. Bain is a pretty active company, I wonder what their plans are?
Well, seeing these private equity groups are about returning gains to wealthy investors, they'll either have to expand greatly or sell off assets to cover the 26% share premium they offered over yesterday's closing price. I think it's more likely they'll look towards making additional acquisitions of other music retailers like, hypothetically, Music and Arts or Sam Ash.

Should be interesting to watch. Bottom line to the consumer will not likely be good news due to lessening of competition.
 

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saxhorn4 said:
music and Arts are already own by Guitar center,also includes wwbw,.music123
... and Musician's Friend....

I guess they go for vertical integration next and pick up LVB (Steinway)......

Or start playing hardball with Chinese manufacturers to increase margins.
 

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Distinguished SOTW Member/Forum Contributor 2008
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So to clarify

WWBW , Musicians Friend , Music-123 , Music and Arts , Giardinelli and Guitar Center are all under one roof. Are there any more?

I would really like to see some informed comments on what this is all about and what it means for the future of music sales.

I hope Dave Kestler will chime in.
 
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