Avid for sale?

[TJ Allen]

Affiliate of STG… could mean anyone. Worryingly vague.


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[musicman691]

Originally Posted by TJ Allen

Affiliate of STG… could mean anyone. Worryingly vague.


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It could be worse - it could have been Francisco Partners.

[zakco]

Originally Posted by musicman691

It could be worse - it could have been Francisco Partners.

Agreed

[Bob L]

Originally Posted by TJ Allen

Affiliate of STG… could mean anyone. Worryingly vague.

From Marianna's post of the SEC-required boilerplate (you know, the stuff nobody reads) from the afternoon of August 9 (yesterday) -

This communication is being made in respect of the proposed transaction involving Avid Technology, Inc. (the “Company”), Artisan Bidco, Inc. (“Parent”) and Artisan Merger Sub, Inc., whereby the Company would become a wholly-owned subsidiary of Parent.

Originally Posted by musicman691

It could be worse - it could have been Francisco Partners.

Or Bain....

Let's "hope" that Artisan Bidco and Artisan Merger Sub, Inc. believe in the principle that happy customers generate revenue and strive to improve the AVID product lines in pursuit of that goal; further that they are able to retain Mr. Rosica as AVID CEO.

I also hope for world peace and that "we can all just get along".
How's that been going?

[DonaldM]

Announced yesterday it looks like. Avid is going private with a deal with STG.
According to the announcement

The transaction was unanimously approved by Avid’s Board of Directors and is expected to close during the fourth quarter of 2023, subject to Avid stockholder approval, regulatory approvals and other customary closing conditions. The transaction will be financed through a combination of equity and debt financing and is not subject to a financing condition. Upon completion of the transaction, Avid will become a privately-held company, and its common stock will no longer be traded on Nasdaq.
For further information regarding the terms and conditions contained in the definitive transaction agreement, please see Avid’s current report on Form 8-K, which will be filed with the U.S. Securities and Exchange Commission in connection with the transaction.

There's more about it on the Avid website.

I'm sure we'll learn more in the days/weeks ahead.

[Southsidemusic]

Originally Posted by easyrider

Sold to STG

https://www.production-expert.com/pr...vate-ownership

I am scared that this will be a ”Slash and Dash” deal and that PT and MC and Sibelius etc will be somd off separately and same with the Hardware side but if I were to ”dream” someone with customer knowledge and care about said customers buy PT and make it even better than it is …. *keeps dreaming*

[ZerglingPhilosophy]

Great news, AVID's relationship with their customers is truly embarrassing and unprofessional. I wish Jeff could've been bought out too. Let's hope he is gone soon and this organization can start to value their customer base again.

[its2loud]

Oh brother! Give it a rest with the trolling.

[basehead617]

Being public seems to me worse than going private.

When you are a public company your investors by definition only care about the stock price and the bottom line, and you have to listen to them. If you’re private there’s only a 99% chance that’s the case instead of 100%.

[LDS]

Originally Posted by basehead617

Being public seems to me worse than going private.

When you are a public company your investors by definition only care about the stock price and the bottom line, and you have to listen to them. If you’re private there’s only a 99% chance that’s the case instead of 100%.

But by definition, a private equity firm is also made up of shareholders who seek to make profit... and they can do it without being hindered by the regulations that apply to a publicly traded company. It would be naive to think that STG spent $1.4 billion buying Avid because they want to be nicer to us end users. They purchased it for one reason, and one reason alone - they think they can make a very decent return on investment.

How they plan to do that is anyones guess. We may become the next Fairlight - a bunch of orphaned DAW users because Avid was divided up and parted out to the highest bidder. Or maybe Avid will become the next Toys 'R' Us - a company purchased by private equity, only to end up with wealthier private equity firms and 30,000 Toys 'R' Us employees out of work and a totally bust brand. Maybe STG thinks it can better refine Avid for another round of going public. Who knows.

Criticise public companies and shareholders are you will. It isn't a perfect system, but at least it gives you or I or anyone the power to have a say in the outcome direction of a company. The same doesn't apply to private ownership via private equity. At this point in time, you could flip a coin whether STG will turn out to be Avid's angels or vultures.