Music gear marketplace Reverb has announced that two new investors – Creator Partners and Servco – will be taking over Reverb from Etsy. This means that, once the deal closes, Reverb will once again be a privately held, independently operated company, for the first time since 2019.
The two investment companies boast varied portfolios – with Creator Partners holding stakes in BMI, SoundCloud, Color Studios, and Mogul, and Servco having been involved in the musical instrument industry since 1937, including a long history with Fender.
“Creator Partners and Servco share our passion for the musical instruments industry and a community-first approach, plus a deep desire to strengthen creative industries,” comments David Mandelbrot, CEO at Reverb.
“The musicians, shops, and brands who use Reverb have always been at the center of all that we do, and these two partners will help us support our music-making community in new and better ways.”
Reverb representatives assert that the company will return to being an independent business and will not merge with Servco, Creator Partners, or any other companies they invest in.
Furthermore, Reverb emphasizes that while both investors also have stakes in Fender, Fender will not receive preferential treatment on Reverb, and their partnership will remain unchanged – including initiatives like Fender’s Certified Pre-Owned program.
Mandelbrot also assures that buyers and sellers won't notice any disruptions as a result of the news. Instead, he promises “a lot of exciting changes,” such as “expanding access to music-making software on Reverb” and piloting a new selling option that “allows musicians to get paid faster, while skipping the listing and shipping process.”
“All and all, there’s a lot for our community to look forward to and I’m very excited about what’s coming as we move forward as an independent company again.”
Creator Partners and Servco's purchase comes at a time when the Trump tariffs are poised to significantly impact the new musical instrument market – as more customers are likely to consider used models and opt for the secondary market if offshore builds become pricier.
For instance, Fender's credit rating was recently downgraded by credit analyst Moody’s, which cited increased financial pressures from Trump’s new tariffs that could raise operating costs by “approximately $20 to $25 million.”
The President and CEO of the National Association of Music Merchants (NAMM), John Mlynczak, has, in fact, already spoken out about the trade war's potential long-term impact on U.S. instrument brands.
