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Corel Acquires Avid’s Consumer Video Editing Products
  • Vitaliy_KiselevVitaliy_Kiselev

    Corel today announced it has acquired Avid’s consumer video editing product lines, including Pinnacle Studio™ HD and Avid® Studio. These industry-leading titles join Corel’s award-winning digital media product portfolio, securing the company’s position as the leader in consumer video editing software. Financial details of the agreement were not disclosed.

    “With the power of the Pinnacle Studio and Corel VideoStudio brands, Corel now offers the industry’s broadest consumer video editing software portfolio,” said Matt DiMaria, Executive Vice President and General Manager of Digital Media at Corel. “These products will meet virtually any need or creative impulse – whether customers are looking to quickly capture, edit and share videos on their iPad or require the exceptional control of a full-featured desktop application.”

    Corel will offer the Pinnacle consumer video editing products to customers and partners through its global sales, marketing and services organisations. As part of the transaction, the company will welcome a core group of employees from the Pinnacle product team to its digital media group, which is also responsible for the company’s VideoStudio®, PaintShop® Pro, WinDVD® and Roxio® product lines.

    Corel’s newly acquired products include the Pinnacle Studio family, Avid Studio, Avid® Studio for iPad and the Dazzle® video hardware product line including Dazzle Video Creator® Platinum HD.

    Via: Press Release

    Sounds quite fun.

  • 19 Replies sorted by
  • fehafeha

    Great news, I use Avid Studio :-)

  • Vitaliy_KiselevVitaliy_Kiselev

    @feha

    It can also mean big troubles and requirement for Avide to get some money.

    Corel is known for not very good parenting. They do not care for original development teams too much. They prefer to save every dollar and move as much as possible to outsource.

  • Vitaliy_KiselevVitaliy_Kiselev

    More on this:

    Avid has agreed to sell its consumer audio and video product lines. The company’s consumer audio products are being sold to inMusic, the parent company of Akai Professional, Alesis and Numark, among others. Headquartered in Cumberland, Rhode Island, inMusic's brands are best known for producing innovative products for music production, performance and DJing. The products involved in this transaction include M-Audio brand keyboards, controllers, interfaces, speakers and digital DJ equipment and other product lines. Avid will continue to develop and sell its industry-leading Pro Tools® line of software and hardware, as well as associated I/O devices including Mbox and Fast Track.

    Separately, the company’s consumer video editing line is being sold to Corel Corporation, a consumer software company headquartered in Ottawa, Canada. The products involved in this transaction include Avid Studio, Pinnacle Studio, and the Avid Studio App for the Apple iPad®, as well as other legacy video capture products.

    The divested product lines contributed approximately $91 million of Avid’s 2011 revenue of $677 million. As part of the transactions, certain employees of Avid will transfer to each acquiring company. Avid estimates that the proceeds from these transactions will be approximately $17 million, subject to closing inventory adjustment, with a portion held in escrow. Both transactions are expected to close today, July 2, 2012.

    Via: http://www.avid.com/US/press-room/Avid-Divests-Consumer-Businesses-and-Streamlines-Operations

    Avid is going down quickly.

  • nomadnomad

    I can still remember the time they started to acquire such products. Actually, their Pinnacle Systems department was one floor up from where I work. I never really understood that move by Avid's management.

    Now selling those products off is not a good sign, I perceive it just like you.

  • Vitaliy_KiselevVitaliy_Kiselev

    @nomad

    It is really simple.

    MBA managment look at departments and leaves one that have biggest margins. And consumer departments, as usual have very thin product margins.

    IBM managers are doing the same for long, long time.

  • kavadnikavadni

    Looks like bye bye to pinnacle .. perhaps the approach .. buy it .. strip it (they took and amalgamated features of Liquid into the Composer family .. apart from that pinnacle seemed to remain independent) take the technology and sell the remainder off.

  • John_FarragutJohn_Farragut

    With all this reshuffling through the years, not many independent companies are left. Products will suffer. Corel has been especially bad with absorbing existing products. After integration, innovation stops, products linger.

    Tough times. Look, Avid has always been more about corporate products and broadcast. Still, with the landscape changing to more and more independent, cheaper, smaller production companies, I think who they serve to becomes smaller. Adobe is more adept in filling in changing landscape. Apple also sees how the landscape changes and fills in products accordingly (and leaving behind their niche customers consequently). Avid always seems like a behemoth, hanging on to something, never seeing the future.

  • luxisluxis

    At least ProTools is intact! Small fish eaten by a bigger fish, in turn, eaten by a even bigger fish, etc, etc...until it explodes overeating. Over and over again.

  • fehafeha

    Hmm, not good sign ... I remeber PainShop Pro, i liked it very much unless Corel bought it ... :-(

  • Vitaliy_KiselevVitaliy_Kiselev

    More on topic:

    Avid are to close the UK Sibelius office, the home of the Sibelius development team, who knows where this leaves the future of Sibelius.

    One long term Sibelius team member said “this is heartbreaking, it took us 15 years to build this business and it took Avid 15 months to wreck it.”

    image

  • RamboRambo

    Little off topic, but AVID have released a neat video editor app for iPad. Will do pic in pic, transitions, animated text, audio, the usual cuts etc and export in 720p. I'm finding it quite handy for small edits on the go.

  • Vitaliy_KiselevVitaliy_Kiselev

    Little off topic, but AVID have released a neat video editor app for iPad.

    This was sold also :-)

  • RamboRambo

    Sorry VK , missed that in your first post :-)

  • DouglasHornDouglasHorn

    They sold products that were responsible for $91 Million in 2011 proceeds for $17 Million in (net?) proceeds? They must have a very dim view of their position in that business going forward.

  • Vitaliy_KiselevVitaliy_Kiselev

    They sold products that were responsible for $91 Million in 2011 proceeds for $17 Million in (net?) proceeds?

    It is different nimbers. I think despite 91 Mln total income, they had been in minus or near it.

  • DouglasHornDouglasHorn

    Right, I understand the difference between revenue and profit. Still, there's typically a multiplier placed on the present value of an ongoing revenue stream. So they were either making almost no profit on that 91M in revenue or all involved doubted their ability to continue making that kind of revenue, or both.

    It's hard to imagine the move will improve sales going forward. With Avid Studio, people could always feel like they were using Avid technology--that was probably a major selling point of the software. Now that will go away.

  • fehafeha

    Here is more :

  • TheNewDealTheNewDeal

    Avid hasn't done any significant development on any consumer M-Audio or Pinnacle product in years. They have just been sucking out the revenue on existing products, and now are selling the only remaining consumer value, the M-Audio and Pinnacle brand names. In these cases, expect the new owners to rebrand their existing products with these brand names too, to take advantage of their existing dealer channels and additional shelf space at big box and web outlet stores.

    Avid? Look what's left. It looks like it's finally getting back to focusing full time on what it does best: Pro news. Pro TV. Pro film. Pro audio. Pro events. Professional networking and workflow. That's where they have always made their real money.

    Consumer is a VERY different business than professional media. It appears current Avid management is finally cleaning up the big mess left by previous management teams who made really terrible acquisitions which almost put Avid out of business. To many full time media professionals, they see this as hope that Avid may just survive.

    Just as Apple is ducking out of pro to focus on consumer, it appears Avid is ducking out of consumer to refocus on pros.

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