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July 19, 2006

../ Inside The Røde/Event Merger

The music manufacturing industry has seen several mergers and buyouts in the last couple of years, some of which made sense, others which left veterans scratching their heads. Many of the larger companies, such as Yamaha and Roland have had the opportunity to buy very attractive swift-moving concerns, but haven't been able to execute due to ensconced, aging management and slow decision making. Others such as Avid have acquired growth companies and integrated their savvy management to make the entire company more successful.

Røde was one of the first companies that started the value-priced, tube microphone revolution. Before Røde, tube microphones were out of the price range of small and project studio owners. Røde came along and created a seismic shift by offering a quality tube mic at a price point that many could swallow. Event took a similar approach to their monitors. Offer a quality product at an affordable price to elevate the entire sector. Today, Event and Røde products can be found in studios of all sizes around the world.


Rode Microphones NTK

Røde's NTK microphone has earned several industry awards


So at what point in time did Røde decide to acquire Event? Peter Freeman, President of Røde, revealed that it wasn't a very hard decision. "I have been involved with Event since day one. First, as a supplier when they were my distributor in the US, and then as the Australian distributor of Event. When the principals decided they wanted to pursue other projects, I was there and ready to go."

Freeman sees a lot of potential in the Event brand and views it as a great platform for launching into additional "projects and opportunities" beyond speakers. The acquisition was not just a quick cash in strategy, and he is very sensitive about handling both brands with precision. "We won't dilute what is one of the world's best microphone brands just to make more short term profit at the expense of our credibility. [The people behind Røde and Event] are friends, and that is more important to me than money."


event studio precision 6 monitors

Event's flagship biamplified system: The Studio Precision Series


So will Event products eventually become Røde? And how will you position the brands going forward? "No, these are two companies, separate in everyway! There is a new company, which will be marketing Event with a Røde/Event feel - so I called it Rodent LLC!" Freeman chuckles. "There is enormous synergy for [both companies]; I love speakers. I was a speaker designer in a previous life - business life that is - now I can play with both the In and the Out aspect of the business. This is going to be fun. We will take Event into some serious new technology areas."

You have to love Freeman's Aussie "up for anything" attitude, which is a nice breath of fresh air in an industry that could use a lot more of this type of thinking. This is the music industry and even though you have to constantly keep a close watch on your numbers, you don't necessarily have to make it dictate the company's future. Look at some of the most innovative companies in the last few years and you'll discover a combination of intelligent products, clever marketing and smart business practices. With the acquisition of Event, Røde has put itself in a position to grow and succeed.

The Future: So will Røde be looking to make additional purchases in the future? "Stay tuned," Freeman reveals, "when we do (notice, I said when) it won't be by IPO, it will be with cash, my cash, and it will be real, and it will last. We have all seen the rocket ship companies of the last decade. Bullsh*t! We are here for the long haul."

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