[opendtv] More industry consolidation
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 23 Mar 2005 09:09:04 -0500
For several years it has been rumored that the Broadcast Division of
Pinnacle (or the entire company) have been for sale. Last year the
rumor at NAB was that Sony was sniffing at the deal.
Monday Avid bought the entire company. This appears to be an
interesting fit. There are a number of Pinnacle products that
complement the Avid product lines - servers, and video graphics
products (The video switchers will probably fade into oblivion). And
there are a number of products that compete with and or complement
Avid products - NLEs, Newsroom systems, and streaming media
processors.
Looks like the net result will be the elevation of Avid into a
"systems" company that can compete more effectively with
Thomson/Grass Valley, Sony and Panasonic.
The consolidation trend continues as the world of TV broadcasting implodes...
Regards
Craig
http://www.broadcastingcable.com/article/CA511939.html?display=Breaking+News&referral=SUPP
Avid Gets to Pinnacle
By Ken Kerschbaumer -- Broadcasting & Cable, 3/21/2005 9:39:00 AM
The long-rumored sale of Pinnacle Systems Inc.'s broadcast division
ballooned into a complete sale of the company Monday morning when
Avid Technology Inc. agreed to acquire it in a cash and stock
transition estimated at $462 million.
Under the terms of the agreement, Pinnacle shareholders will receive
.0869 shares of Avid stock and $1.00 in cash for each Pinnacle share.
At closing, it is expected that Avid will issue approximately 6.2
million shares and pay $71.3 million in cash, for a total estimated
value of $462 million based on Avid's stock price of $62.95 at market
close on Friday, March 18, 2005.
The move fills in a critical missing component in Avid's product
portfolio: graphics and, in particular, character generator products.
Pinnacle's DekoCast lineup and its MediaStream broadcast playout
server are both key reasons for the deal, as is Pinnacle's consumer
video business which is centered around low-cost desktop editing
tools.
"We see this acquisition as the next logical step in our long-term
strategy," Avid President and CEO David Krall said. "Avid will be
able to tap into the next generation of video editors while they are
still learning their craft. This creates a very large potential
customer base for Avid's future. At the same time, we believe that
Pinnacle's professional broadcast offerings will fit seamlessly with
Avid's business, extending our end-to-end broadcast solutions with
servers and on-air graphics products. We think it would be hard to
find a more complementary match for these two businesses than what
this combination provides."
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