With Eugene "ED" Denson, Fahey drove to Memphis, Tennessee, and the pair produced White's first recording in 23 years.

The compilation Contemporary Guitar was recorded in 1966 and featured Fahey, Basho, White, Max Ochs, and Harry Taussig.

Although at the same time Takoma released the avant-garde album The Psychedelic Saxophone of Charlie Nothing, its concentration was on acoustic guitar music, especially Fahey's.

Takoma's musicians using this technique included Leo Kottke, Peter Lang, Mike Auldridge, Robbie Basho, and Max Ochs.

The label also produced records by New Age pianist George Winston, Mike Bloomfield, and electronic musician Joseph Byrd.

When Denson became manager of the rock band Country Joe and the Fish, Fahey became the sole owner of Takoma.

In 1979 Fahey sold Takoma to Chrysalis Records, a company owned by Terry Ellis and Chris Wright which produced Blondie, Pat Benatar, and Huey Lewis.