Leo Fender sold his company, Fender, primarily due to significant health issues stemming from a streptococcal sinus infection that severely impaired his well-being.
The Reason Behind the Sale
In the 1950s, Leo Fender's health began to deteriorate due to a persistent streptococcal sinus infection. This condition had such a profound impact on his health that he made the decision to wind up his various business affairs. This led to the sale of his renowned company, Fender Musical Instruments, in 1965 to the Columbia Broadcasting System (CBS).
The sale was a direct consequence of his desire to step back from the demanding responsibilities of running a large enterprise and focus on his health.
Details of the Transaction
The sale to CBS was a significant event in the history of musical instruments. Key aspects of the deal included:
- Year of Sale: 1965
- Buyer: CBS (Columbia Broadcasting System)
- Condition of Sale: As part of the agreement, Leo Fender signed a non-compete clause, which prevented him from starting a competing instrument company for a period.
- Continued Involvement: Despite the sale, Fender remained involved with the company for a while as a consultant, lending his expertise and knowledge to the new owners.
This transition marked the end of an era for Fender as a family-owned business under its founder's direct control and the beginning of its period under corporate ownership.
For more information on Leo Fender's life and work, you can refer to his Wikipedia page.
