Avid continues …

[Franz Bieberkopf]

https://ir.avid.com/releasedetail.cfm?ReleaseID=818367

Jan 9, 2014
Two new executives:

“Rick Lowenstein has been appointed senior vice president of customer success and professional services, while Mitch Weaver joins as vice president of software development.”

Franz.

[Aindreas Gallagher]

Tannoy announcement – ding dong

“CRAIG SEEMAN. CALLING CRAIG SEEMAN TO THE DECK.”

unsheath that blade Seeman.

https://vimeo.com/user1590967/videos http://www.ogallchoir.net promo producer/editor.grading/motion graphics

[Craig Seeman]

Die Avid Die!
They are a zombie company.
The Walking Dead.

It would seem their goal is to “involuntarily” go “private”… get delisted so they don’t have to do any reporting. I wonder if the strategy is actually to make it difficult for someone to gather stock and buy them out (avoid leveraged buyout or undervalued sale).

Consider how bad of a mess their books would have to be in to have not straightened this out… or that this is deliberate (I speculate).

They don’t want the numbers known and they’ve decided it’s better to get delisted. Their lack of debt puts them in a good position to look for a buyer away from the stock market’s eyes.

Just wild speculation of course.

[Jeremy Garchow]

[Craig Seeman] “It would seem their goal is to “involuntarily” go “private”… get delisted so they don’t have to do any reporting. I wonder if the strategy is actually to make it difficult for someone to gather stock and buy them out (avoid leveraged buyout or undervalued sale).”

I was wondering about this.

But then what happens to the people who own Avid shares?

Is this legal or are there penalties involved with simply defaulting with the SEC?

[Craig Seeman]

[Jeremy Garchow] “But then what happens to the people who own Avid shares?”

One can still own, buy, sell shares “privately”
I believe the logistics are a bit more difficult though which is why being listed is valuable… but being listed probably makes a leveraged buyout (vs a negotiated buyout) more difficult. I’m also wondering/thinking that being delisted might make it easier to “control” a capital investment (control who the investor is).

Personally I think this is a very deliberate move by Avid to get delisted. If it’s simply “messy books” they can’t straighten out, that would actually be far worse. I don’t think any investor will put money in or buy a company whose books can’t be audited and understood when the investor/buyer investigates. If their books are that bad they may truly be “toast” because there’s no way they can bring in money that way. That would make the very high risk IMHO.

Basically I’m saying I doubt they’re “toast.” More likely this is a tactic so they can reconnoiter outside of the public eye. The result is that they’ll either get an “infusion” with strings attached or they’ll be sold.

[Andrew Kimery]

[Jeremy Garchow] “But then what happens to the people who own Avid shares?

Is this legal or are there penalties involved with simply defaulting with the SEC?
“

From what I’ve read nothing really changes for share holders from a legal standpoint. Avid would still be a public company and share holders would still have their shares and their legal rights associated with holding shares. The big change is that Avid’s shares would have to be bought/sold ‘directly’ (for lack of a better word) through brokers since they won’t be available on the stock market anymore. The stock value will take a big hit though because there will be much less interest in a company that’s not listed.

[Mark Raudonis]

[Andrew Kimery] “”But then what happens to the people who own Avid shares?”

Did you watch, “The Wolf of Wall Street?” THAT’S what happens!

[Craig Seeman]

[Andrew Kimery] “The stock value will take a big hit though because there will be much less interest in a company that’s not listed.”

I’m not quite sure that it’ll take a hit given how low it is. I think they avoid volatile market fluctuations. The interest would be “targeted” though. Avid gains a lot more control over the transaction (I believe) and I think that’s their motive. My guess is they’ll work with brokers to look for targeted friendly investors or a friendly buyer. Again, just my speculation.

[Jeremy Garchow]

Thanks, Craig and Andrew.

[Oliver Peters]

[Craig Seeman] “Die Avid Die!
They are a zombie company.
The Walking Dead.”

But why do you care? You clearly don’t appear to have any vested interest in whether they survive or not. I just don’t get it.

– Oliver

Oliver Peters Post Production Services, LLC
Orlando, FL
http://www.oliverpeters.com