If they go AI, I wish them burn as quick as possible.

 

I would not be surprised if N.I went the road of similar business transactions like Studio One (Fender), Reason (LANDR), many SONY creative products (MAGIX) as well as iZotope that N.I took over, like other known mergers, went the path of being incorporated by a larger 'less-insolvent' company.

Somehow, I cannot see a large music developing contributor being left to bite the dust with such a large user base, without another corporate at least attempting to buy them out of debt.

I believe it is healthy to consider observing more as it develops, rather than conjecture, speculation and pre-empting its downfall.

 

Arturia, if the keyboard, in MK3 88, without polyphonic aftertouch, is irrelevant for you.

 

Well, if you figure 500 employees worldwide, your "+6M€/month" gives you 12k/month, which appears adequate in terms of "salaries" and "envelopes."

However, NI isn't just a global software company, it's also a hardware company - hardware helps lock in software users in your ecosystem (until you drop support; e.g., Kore - yes, I had one, and yes, I was pissed). Both divisions would incur the usual overhead: rent or mortgage payments (for office buildings), basic maintenance (cleaners), utilities, computers/monitors/desks/chairs/supplies, etc., and let's not forget travel expenses or - gasp! - the marketing budget (NAMM is but one such example: it's not free and certainly not cheap).

That's before healthcare plans, taxes and the much discussed debt payments. So your €12,000/per wouldn't go as far as you'd expect.

There's management, and ownership. Let's not call mismanagement the misdirection of ownership. Unless you've solid evidence thereof.

 

for every example of good community made drivers, we have 100s of pieces of abandoned hardware (some already from NI!). I'm not gonna hold my breath

somehow I trust Behringer more than NI at this point

 

A former colleague and good friend works at Bain & Company. I reached out - he'd never even heard of NI (not uncommon; his division is Telecoms), so he reached out to his former colleagues at Bain Capital that might have.

This is what he heard back from them about NI: "It's not even a drop in a bucket of water. It's a molecule."

Last but not least, I read that insolvency in Germany is a lengthy process (someone here said 4 years), and that one of the main advantages of insolvency proceedings is that employees be laid off "cost-effectively." So that's semi-bad, semi-good news. Bad for the employees, and users of whichever modules or libraries they developed; good that this "restructuring" won't be an overnight process.

 

Not that I disagree with you (I don't) but in fairness, if you look at Yamaha, Korg, Roland, Tascam, Nord... what's new there exactly?

- Yamaha is still squeezing FM synthesis (which they did not create) for every sonic atom and molecule they can.

- Korg's Karma bill has long been overdue.

- Roland's "sampled" pianos and "super natural" are neither super or natural sounding.

- Tascam/TEAC... exactly what have they brought to market this century that they created?

- And Nord - I'm chuckling as I write this - hasn't released a "new" product since the Lead (1). It's all emulations of old instruments - organs, pianos, Rhodes, Wurli - in a Ferrari red package (their only true invention I suppose). Even their keyboards aren't theirs.


In software, well, exactly what's new? Machine Learning? Not our industry's "creativity." All ai engines are licensed from Microsoft, Amazon, etc., and integrated with existing/evolving software.

The last drops of creativity were in the 80s and 90s - Roland's D-50 was certainly innovative and creative. Eric Persing launched his Spectrasonics (Omnisphere, Trilian, Stylus, etc) off of its success. Besides Roland, Korg innovated (wavetable, waveform ROM, and the previously mentioned and licensed Karma). Yamaha squeezed all it could out of FM, added AWM, etc., but basically, no one's "created" ever since their breakthrough digital synthesizers/workstations.

Now I write this as an owner of many of the above keyboards and products - to be clear. I've a tendency to sound/write tersely or sarcastically, I'm aware (I just can't be buggered to rewrite after the fact) - but I respect those companies (for the most part).

I mean what else do you want? Some good acoustic piano sounds, great Rhodes sound (that's a must), decent Wurli, Pianet, Clavinet and B3 sounds, some synth pads, brass and strings sounds, maybe some vibes and marimba. Everything else is for the techno-DJs that call themselves producers (even though they don't interact with anyone but themselves - an analogy comes to mind, but well...).

Bottom line - to be "creative" in the music instrument industry lately is exceedingly rare. Not to be confused with ingenuity - how to squeeze more out of existing technology (e.g., 32-bit recording that overlays two 24-bit recordings, or new AD/DA converters).

The most creativity I've seen in the MI industry recently (last 10-15 years) is in studio monitors, headphones, and lately microphones.

Everything else is an evolution, a repackaging, a hybridization (like creating a mule from a donkey and a horse). For instance, the brilliant Camden R-800 (my next purchase). Perhaps only the Vintage Vibe Variable Voice Control (VVC) is a truly creative, novative concept (admirably executed).

 

Last edited: Jan 31, 2026 at 1:27 AM

Haha, I appreciate you concisely saying what I probably would have turned into a small novel.

 

A very interesting debate, especially Andre's comment shows how negative the impact can be for some musicians. (57:04)

Also liked how they talked about the NI situation as a problem that is likely to happen more and more often with others as well. Interesting times lie ahead.

 

Why not? Guitar Center are in the hole for over a billion.5 dollars at any given point the subject arises. Sweetwater and Thomann are not even similar. Sweetwater apparently has a massive $478+ million pension liability, if all those old people don't die soon enough. I know NI will probably never pay that down, but they are not the only ones.

Spoiler

Guitar Center has a long history of significant debt, leading to a 2020 Chapter 11 bankruptcy filing to restructure over $1.3 billion in liabilities, shedding nearly $800 million by bringing in new equity and financing from investors like Ares, Carlyle, and Brigade Capital. Although it emerged quickly, the company continues to manage its heavy debt load, recently extending maturities from 2026 to 2029 in 2025 to gain financial flexibility, though credit ratings remain low, reflecting ongoing challenges in the music retail market.
Key Debt Events & Timeline:

• 2007:
  Bain Capital takes Guitar Center private in a $2.1 billion leveraged buyout, increasing its debt burden.
• 2014:
  Ares Management buys Guitar Center, converting equity to debt in a restructuring.
• Pre-2020:
  The company faces increasing financial pressure, despite prior profitable quarters, with over $1 billion in debt maturing.
• November 2020:
  Guitar Center files for Chapter 11 bankruptcy to execute a financial restructuring, wiping out $800 million in debt and securing new capital.
• December 2020:
  Exits bankruptcy with a new capital structure and ownership, including Brigade Capital Management and The Carlyle Group.
• 2021-2024:
  Sees temporary credit rating improvements followed by downgrades, indicating continued financial strain.
• August 2025:
  Completes a major refinancing, extending debt maturities from 2026 to 2029 to allow more time for its business plan.

Current Situation:

• Guitar Center still carries significant debt but has successfully extended its maturity dates to 2029.
• The company's financial health remains a concern, with ongoing efforts to navigate market challenges and compete with online retailers, while leveraging its lessons, repairs, and rental services.

The people in that same time period of the video are asking about wether or not their Kontakt libraries will no longer work, but they are forgetting the authenication when reinstalling any of them. Sure it is a problem which they mention about things needing updates, being buggy, and so on. But if you do not have your system backed up as full images, you are going to run into this problem simply by reinstalling your OS and having to reload the software using installers, right?

 

Last edited: Jan 31, 2026 at 4:51 AM

It's sad how the lack of real Business Administration expertise ruins companies like Native Instruments.....

Native Instruments CEOs Academic Background (Degrees)

Founder >> Stephan Schmitt 1996–1997 (Founder/MD) Engineering/Music (no formal degree confirmed, technical focus)

Daniel Haver 1997–2020 Trier University (field unclear, possibly humanities )

Constantin Koehncke 2020–2023 BA Media Arts (Royal Holloway, London); MA Culture and Media Management (FU Berlin) – both humanities

Nick Williams Since January 2025 BA English Literature (Swansea University) – humanities

Humanities, humanities, humanities... CEOs who studied humanities leading a tech company like NI?
No Business Administration in sight. It's wild how zero real business degrees are tanking the company. Sad!

Bachelor of Arts......... is the best these guys have to offerfor these rough business times

 

I absolutely get your point and it intuitively makes complete sense...however...I had a client that was the CEO of a huge plastic manufacturing concern, taking natural gas and/or crude oil to make the pellets used in the manufacture of almost every container and plastic thing there is. His background wasn't in Business Administration but rather in Management and he was head hunted from his work at a worldwide Pharma group. I was curious about exactly your concern, and when queried gave me this answer...I don't need to know how to make plastic, drill for oil or the intricacies of finance, I have engineers and a Chief Financial Officer, all I need do is ask the right questions to the right people, make a decision, read the wind and say, "GO!".

 

Thanks @Balisani, I enjoy reading your insightful comments and would like to add the following from my perspective:

Your expectation of always receiving something new hasn't been met, and now you're starting to portray these reputable companies negatively. Be happy with the products you have that work. Simply find another company that meets your innovation expectations.
Anyone can invent something and bring it to market. If people perceive added value or find it useful, they will buy the product.

The heyday of groundbreaking innovations is long gone; you can't reinvent the wheel. The creative minds, engineers, and technicians have been incredibly diligent and quick over the last five decades, applying the maximum amount of knowledge and research to bring a product to market and mass-produce and sell it. Do some research and look at the patents these companies have filed.

Staying competitive in the market is only possible if you have products that people actually buy, and in large quantities. With the advent of digital technology and chip development, much hardware has been replaced by software. Software has the advantage of being much cheaper, portable, requiring no repairs, and offering more storage (depending on the hard drive).

As you know, there are only six synthesis methods: subtractive synthesis, additive synthesis, FM synthesis, wavetable synthesis, granular synthesis, and physical modeling. There's nothing in sight that sounds appealing and can be mass-produced.

It depends on the intelligence and ingenuity of the developer how they combine and implement these synthesis methods. To do so, they must prevail against the competition. I don't believe there will be any more groundbreaking inventions. The Omnisphere Update, Pigment Update, and Falcon Update, for example, brought some improvements and innovations. I think we're at the end of the development cycle. We're still making improvements and adjustments. Now, only AI remains—the business of the future.

As you know, we now have endless presets, samples, and high-quality software instruments; humanity has come a long way, anyone can make music at home and upload it directly to the internet. Data centers are the new churches.

 

I don't want every company to innovate just for the sake of innovation. I want companies to make usable products.

Every possible class of product we know started as an innovation and later became a mature thing. Electric guitar was an innovative idea in the 50s. But I don't want Fender of Gibson to "reinvent the wheel" now - people just want those companies to manufacture quality guitars, that's all. To maintain their legacy on a quality level. Just as nobody expects Steinway or Bosendorfer to swiitch to digital pianos.

The thing is NI haven't been particulary innovating, nor good in maintaining their legacy...

 

When NI was founded, all was well, everything was going great, the Berlin techno scene was consulted about their needs, and NI responded by providing the hardware. Money flowed freely. Reaktor, B3 (Hammond organ), FM7, Pro53, Traktor, Absynth, FM8, Massive, Kontakt, Maschine, Kompakt, Impakt, Kontol S, Kontakt Player – everything was fantastic until 2018, then came the decisive mistake:

Between 2019 and 2020, NI experienced layoffs and restructuring. In 2020, the company's co-founder and CEO, Daniel Haver, and the then Chief Innovation Officer and President, Mate Galić, resigned from their leadership positions. Galić had joined the company as Chief Technical Officer in 2009. In 2021, the private equity firm Francisco Partners acquired a majority stake in Native Instruments.

As you can see, they made the wrong decisions back in 2019; since then, the company has been plundered.
Welcome to the shark tank! Greed eats brains!

 

Diary or milestones from the downfall of NI

Large Parts of Native Instruments Sold to Tech Investor - January 22, 2021

Has Native Instruments sold its Traktor DJ division to Allen & Heath? The rumor from last year could have been confirmed. Such a move would certainly have been good for NI's DJ division, but unfortunately, it hasn't materialized.

The latest information from Native Instruments suggests that the sale of the DJ division to Allen & Heath will no longer take place.

A large part of the Berlin-based company Native Instruments has been, or is in the process of being, sold. The previous owners of the majority of the company—the investor EMH Partners, which acquired shares in NI for around €50 million in 2017 and invested again in 2020, and the company's founders as other shareholders—have apparently reached an agreement with the new investor, Francisco Partners. According to Business Wire, EMH Partners, the company's founders, and other shareholders will retain only a small stake in the company.

Francisco Partners, the new "owner" of Native Instruments (NI), is a global investment company/private equity firm focused on the technology sector. To what extent this sale, and thus the continued investment in Native Instruments, will be noticeable to users, and whether it will ultimately pay off, remains to be seen.

However, one trend is already emerging, and it reflects what the past few years have shown: Traktor DJ will not be the beneficiary of the sale. While revenues have increased by 60% since 2017, and the number of users has doubled to approximately 1.5 million, this growth is undoubtedly largely due to NI's music production offerings, and certainly not to new users of Traktor DJ Pro. In the statements regarding the sale of NI from EMH, the founders of NI, or the new investor Francisco Partners, there is no mention of the DJ division within Native Instruments.

„Together we can realize our mission to empower and inspire the global community of music creators and help them unlock their creative potential through more seamless experiences. Thanks to the support of EMH Partners over the past years we were able to further reinforce and expand our position as the leading digital music creation company, and we now look forward to working with Francisco Partners, EMH Partners and the founding shareholders to continue on this amazing journey.“ – Constantin Koehncke, CEO, Native Instruments

Source: https://www.amazona.de/industrie-news-native-instruments-verkauft/

 

Music and sounds have plateaued a long time ago. What could possibly happen that isn't just a reshuffling of the same deck of cards. What'd need to happen is some new radical kind of way people experience music. Who knows what that could be... brains jacked into tech that'd provided some vastly new, never before imagined transcendent, visceral, immersive, listening experience or something. I'll probably be dead by then so, you young'uns enjoy! lol

 

Last edited: Jan 31, 2026 at 5:09 PM

We already have virtual software synthesizers that we can tinker with and generate new sounds, and we also have a multitude of new effects and tools that allow us to edit the sound ourselves. We don't need anything new at all; we just need to switch everything off for a week and reboot so we can actually realize where we live.

You should go into the woods for two weeks without anything to hear the sounds of nature again.
I think humanity needs catastrophes every now and then so we can learn to appreciate what we already have.
We already have everything we need.