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Author Topic: the gibson opcode buyout story (May 1998)  (Read 1544 times)

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Offline chrisNova777

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the gibson opcode buyout story (May 1998)
« on: December 07, 2014, 09:52:24 PM »
http://web.archive.org/web/20050828222145/http://www.geocities.com/SiliconValley/Monitor/6454/

http://web.archive.org/web/19980624091455/http://www.opcode.com/news/press/gmi_opcode.html

Quote
Release Date:   May 29, 1998

 

GIBSON MUSICAL INSTRUMENTS PURCHASES OPCODE SYSTEMS

–Guitar Giant Acquires Leading Music Software Manufacturer–

NASHVILLE–To accelerate its expansion into the music technology marketplace, Gibson Musical Instruments of Nashville, Tennessee has purchased Opcode Systems of Palo Alto, California, a leading manufacturer of music production software and hardware.

Opcode, best known for its award-winning Studio Vision Pro software and line of MIDI hardware products, will be run as an independent subsidiary. Chris Halaby will remain as the company’s president, a position he has held since 1988, and will serve on Gibson’s Board of Directors.

Gibson, which has owned stock in Opcode Systems since 1995, believes that the two companies’ plans for the future had much in common and that a strong synergy will result from the merger.

"Opcode’s considerable depth of technological experience and refined product line greatly enhances our ability to move aggressively into the music software and hardware arena, while providing a software complement and added technical direction for our Oberheim keyboard subsidiary," says Gibson CEO Henry Juszkiewicz.

Halaby, a lifetime guitarist whose first guitar was a Gibson Les Paul, also feels it’s a perfect match: "Opcode’s relationship with Gibson represents a milestone event for our company. The merged organization will have the agility and ingenuity of a startup and the size, strength, brand recognition and leadership of a company that has been serving musicians for over 100 years."

Where Tradition meets Technology

Opcode Systems, Inc., founded in 1985, has built an enviable reputation for designing products that appeal to a wide range of professional, semiprofessional and aspiring musicians worldwide, as well as to a large base of music educators and multimedia developers.

To achieve its goal of significantly broadening the music production market, Opcode is currently developing a complete family of next-generation, cross-platform products that will dramatically simplify and lower the customer’s cost of entry into both computer music software and multitrack recording applications.

This strategic direction caught the eye of forward-thinking Juszkiewicz, who sees much of the growth in the music industry coming from computer technology, particularly as it can be married to more traditional instruments.

"The typical Gibson customer tends to view most technology as both sterile and overly complicated," admits Juszkiewicz. "Opcode, in stark contrast to many of its competitors, has succeeded in simplifying music production by offering powerful tools that don’t get in the way of the creative process. These tools continue to make more and more traditional instrumentalists comfortable with technology, which will inevitably help us reach a customer base far beyond the electronic keyboard centered niche that music software currently occupies."

Both companies confirm that the merger will provide for a significant investment in Opcode research and development, allowing a greater number of products to be delivered to market at an accelerated rate. The companies also feel they can effectively leverage each other’s dealer base, helping dealers break down the barriers between technology and tradition.

"When you go into many music stores today, stringed instruments are usually located in one part of the store and music software is over by the keyboards," observes Halaby. "But as we work both sides of the customer equation, we can succeed in breaking down the barriers, and build business with an entirely new and growing customer base."

For additional information, visit the Gibson Musical Instruments and Opcode websites (http://www.gibson.com/ or http://www.opcode.com/)

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