According to a report by Reuters news agency, Avid is said to be exploring a possible sale. Anonymous sources report that Avid Technology, known for its video editing program Avid Composer and audio program Pro Tools,
is working with investment bank Goldmann Sachs to solicit bids from potential buyers and organize the sale. According to the sources, however, a sale is not yet certain - spokesmen for Avid and Goldman Sachs declined to comment.
Actually, the actual business figures of Avid, which has a market value of more than million, were not bad: so Avid&s annual recurring revenue grew to million, which is an increase of 8.1% compared to the previous year, and the revenue from subscriptions even grew by 30.1%. Still, total revenue was down 2.8% year over year in the first quarter.
Avid&s CEO blamed supply chain problems for the lower profit margin on audio hardware sales and the resulting revenue decline at the company&s recent shareholder meeting. Analysts were disappointed, and as a result Avid&s stock price fell 20% since the beginning of the year.
The stock market, at any rate, reacted positively to the possible sale: since the rumor became public, however, Avid&s share price has risen by around 20%. How the sale - should it come about - will affect Avid&s software is uncertain.