The Future of Avid, Round 2
By Jennifer P
In an article by Oliver Peters for the DigitalFilms website, the author discusses the recent acquisition of Avid Technology by private equity firm STG. The deal, announced on August 9, 2023, will transition Avid from a publicly traded to a private company, offering stockholders a premium over the low share price reported in May. However, this price is lower than the company’s high point over the past year.
The article highlights the uncertainty regarding Avid’s future plans following the acquisition, suggesting that more details may emerge between IBC and the next NAB conference in April 2024.
It emphasizes that Avid’s product portfolio extends beyond Media Composer and Pro Tools, including Sibelius music notation software, cloud services, storage solutions, centralized facility workflow systems, graphics, and associated hardware. The author also notes that Pro Tools, primarily on the audio side of Avid, contributes significantly to the company’s revenue.
The article speculates about the possibility of spinning off the Pro Tools portion of the company as a separate entity, but acknowledges the complexity of such a move and its potential impact on Avid’s market position and integration between Media Composer and Pro Tools.
Despite the acquisition, the article asserts that Avid products remain deeply ingrained in various enterprise operations, large-scale rental suppliers, and professional recording studios worldwide. It emphasizes that Avid’s dominance among professional users in the film and TV post-production industry is unlikely to change without drastic issues, given the challenges of switching to alternative products and workflows.
The article concludes by discussing the uncertainty surrounding Avid’s future under STG’s private ownership, highlighting STG’s focus on data and software tech companies and the potential challenges of investing in a mature company like Avid in the media and entertainment sector. It also raises the possibility of cost-cutting measures and a shift towards subscription-based products and services.
The author encourages both young professionals and established editors or mixers to continue using and learning Avid’s tools, emphasizing their continued relevance in post-production workflows for the foreseeable future.
Read the full article by Oliver Peters for digitalfilms HERE
Learn more about Avid Media Composer HERE
Learn more about Avid HERE