Published
Sat, Aug 19, 2023, 16:00
- The deal ends months of speculation about the company's future.
Avid Technology, the maker of the digital audio workstation software Pro Tools, has been acquired by a private equity company for $1.4 billion.
If the deal is approved by shareholders later this year—which is seen as a formality—Avid will revert to being a private company wholly owned by STG Partners, which is based in Menlo Park, California.
In recent years, especially since adopting a subscription model in 2022, Pro Tools has lost popularity with smaller studios and independent musicians. However, Avid's audio and video editing products remain the standard for the entertainment industry. The Avid website states that every record nominated for Record of the Year at the 2022 Grammy Awards was made with the help of Pro Tools, while every film nominated for Best Editing or Best Picture at the 2022 Academy Awards was edited using Avid Media Composer.
Despite this, the company had shown signs of trouble in recent months, blaming Covid-19 supply chain disruptions after missing analysts' predicted earnings earlier this year.
Reaction to the acquisition was mixed, with some users sharing concerns that STG would look to cut costs and support for consumers. Other Pro Tools users argued this could mean Avid refocuses on smaller users to capitalise on the rising popularity of podcasters and independent creators.
Read the full company statement about the sale.