Avid also bought Pinnacle for $425-ish million. A lot of that was in stock, and certainly much of the value was for broadcast graphics, servers, etc. -- but it's also not like $91 million in revenue for their computer graphics is anything to sneeze at.
Of course, we don't know the extent to which consumer stuff was actually turning a profit for them. Once they get rid of the sales, support, R&D, development and manufacturing costs for those products, the $17 million might just be positive-cashflow gravy on top of stopping the bleeding.
I think it drives home that they understand that they need focus more than anything else. Well, that and making more than they spend. This could be a potential step toward both.
There's no consolidating MC and Symphony. It's one or the other. It would be a matter of killing the Media Composer brand and calling it all Symphony, or killing the Symphony brand and making it all Media Composer. They're surely using the recent Symphony sale to re-evaluate this, but I suspect that they saw that Symphony still has upsell value for both hardware and software -- which is to say that both brands are still valuable in unique ways. CAR ANALOGIES SUCK, but I see that most mfrs still see some value to product line differentiation.....
Tim Wilson
Vice President, Editor-in-Chief
Creative COW Magazine
Twitter: timdoubleyou
The typos here are most likely because I'm, a) typing this on my phone; and b) an idiot.
Tim Wilson
Vice President, Editor-in-Chief
Creative COW Magazine
Twitter: timdoubleyou
The typos here are most likely because I'm, a) typing this on my phone; and b) an idiot.
