I won't pretend to know a lot about any of this, but there seems an awful lot of widly fanciful and over-confident speculation. Why do people keep talking about music and audio companies? Quite apart from Avid being better known for video, LVS is an investment management company. Seems more logical to me that these kinds of companies would be more likely buyers.
Every company has a different take and things they are looking for. In the Insider Moneky article, they quote the LVS investment newsletter as saying:
Quote:
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Our investment thesis was that Avid is the ‘arms dealer’ to the streaming war and would benefit to the extent that Netflix, Disney, HBO, and others ramp up spending on content. Our view today is that the streaming war is over and Netflix won.
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That last sentence in particular is very odd, as is the entire premise. Other companies may well have a different take on the things to look for in the rapidly changing market.
From my humble perspective, I think Avid's main problem is that it hasn't moved with the times, so less likely to be able to embrace new ways of working, especially around AI. Adobe are vastly more advanced there. I don't know if all investors will be thinking on these lines, but given the huge industry changes that are all around us (not so much the individual performance of a streamer), it would seem a sensible metric to me.
In our humble audio sphere, while Avid are adding improvements to marker tracks as a big new feature while Adobe and Descript are spearheading an audio revolution, I do wonder how they will compete.