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Thread: The AVID story.

  1. #1
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    Default The AVID story.

    I didn't know if you were aware of this:

    http://wallstreetpr.com/avid-investo...iant-avid-3730

    "Avid is not in a position to be saved (purchased) by Apple, rather the world’s largest company will sit patiently in the hopes that Avid drives itself to bankruptcy. Both the numbers and the company’s explanation on the October 29 will prove vital to Avid’s future."

    Avid stock dropped to just over $6 a share this week after reports of anticipated losses for Q3.

    The last thing I want to do, though, is fuel any rumors. Digi is co-sponsoring the Tape Project this weekend at AES. They're still here and still developing products.
    Lynn Fuston
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    Making beautiful music SEEM easy since 1979.

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    Radar ain't looking so bad all of a sudden, is it? Reaper?

    Just gotta wonder when/if the beast will consume itself, and if they will release a ProTools Greece version
    Ken Morgan
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    I'm not a harbinger of doom and I don't think the future is grim, but financial realities are what they are. Buying a $20,000 PT system wasn't hard to justify when album budgets were $100,000 and an engineer had six of them lined up. These days, however, I don't know many engineers who are in that situation.

    So what's next?
    Lynn Fuston
    3D Audio

    Making beautiful music SEEM easy since 1979.

  4. #4
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    Avid/Digi were never going to be saved by Apple... that was clear when Digi started moving towards the PC.... by that point, any potential Apple/Digi alliance had been sunk. This was clear to me, because Apple wants to own and control every aspect of the personal computer users experience (and now with the success of their iPhone, that control has extended exponentially beyond computers and into the lives of many other Americans...) .

    When Apple bought Logic, I presumed that it was a done deal, Apple found their app and it wasn't going to be Digi... Apple was going to make it harder and harder for Digi to survive in an Apple world. Digi started their migration to the PC and also into the live sound area. I figured that they had gained so much popularity in the live area that it would prop up the company. Because they are very popular in that area. But maybe they've relied too much on being able to sell Pro Tools and PT hardware in this rough environment, and have invested too much in that direction. Too bad. But the game isn't over yet. Is anyone conversant in the position of Avid in the video world?
    Bill Park
    Welcome Home Studios

    The elites have squandered the country's wealth on two of the costliest and most useless wars in American history while blithely pretending that the environmental crisis doesn't exist. We no longer have any mechanisms within the formal structures of power that will protect or advance our rights.
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    Showbusiness. We're all here because we're not all there.

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    Like Lynn suggested earlier, AVID may not actually have anything that Apple needs or wants (even at near-bankruptcy prices) and Apple isn't really in the corporate raider Gordon Gecko business, to swoop in for a bargain price and then make a profit from dissassembling and selling off the various bones.

    They also can't really take over an American company and then lay off or fire most it's workforce (likely one of it's largest expenses) to save money while exploiting any tech or patents or contracts.. while most of their own labor force is overseas in China. That would be a PR disaster for Apple.

    Now Behringer OTOH.... ... or Bain Capital...
    Last edited by Lawrence; 10-26-2012 at 10:24 PM.

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    Avid may go thru bankruptcy, be bought up by its execs etc, but I don't think it will disappear. They are sitting on some valuable intellectual property and pretty much own the sound recording biz and a lot of the PA mixer biz. It just might end up a much smaller operation, with fewer products.

    philp

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    Quote Originally Posted by Philip Perkins View Post
    Avid may go thru bankruptcy, be bought up by its execs etc, but I don't think it will disappear. They are sitting on some valuable intellectual property and pretty much own the sound recording biz and a lot of the PA mixer biz. It just might end up a much smaller operation, with fewer products.

    philp

    Agree. The shorter term danger for AVID is the sinking stock price. If it gets too low the company will maybe become a target because of their intellectual property and similar, if those things are potentially valuable assets on their own. If Avid has a huge bundle o' cash in a pension fund somewhere it will be even more attractive to the financial buzzards.

    Their best bet - if they can't stop the bleeding or regain some Wall Street confidence - is probably a restructuring, like you suggest above.

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    I can't say anything than my own opinion and observation (wish the world would do the same, but that's a different thread)... but if I were looking to buy stock in a company, I would most certainly NOT buy stock in a company that spends much/most of its R&D competing against its own past, which is exactly what companies like AVID, Fender, SSL, etc do. They are inventing ways to make consumers and investors believe that what was, is no longer valid, and what is, is the answer...until the next wave of marketing comes along, when it starts all over again.

    The whole thing is a bit weird...My broker says stay out of tech altogether until the dollar stabilized, and buy oil futures, but what does he know?
    Ken Morgan
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    I vote Behringer.
    Doug Williams
    Electromagnetic Radiation Recorders

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