A private equity firm has successfully acquired Avid Technology, the creator of the renowned Pro Tools digital audio workstation software, in a transaction valued at $1.4 billion.
Pending the expected shareholder approval later this year, Avid is set to transition into a private entity owned by STG Partners, headquartered in Menlo Park, California.
In recent times, particularly since its adoption of a subscription-based model in 2022, Pro Tools has experienced a decline in popularity among smaller studios and independent musicians. Nevertheless, Avid’s audio and video editing solutions maintain their standing as the industry standard within the entertainment sector. Per Avid , every record nominated for the 2022 Grammy Awards’ Record of the Year was crafted with the assistance of Pro Tools. Similarly, each film contending for Best Editing or Best Picture at the 2022 Academy Awards was meticulously edited using Avid Media Composer.
However the company still saw challenges in recent times, attributing missed earnings earlier this year to disruptions in the supply chain caused by the ongoing Covid-19 pandemic.
Public reaction to the acquisition displayed a blend of sentiments. Some users expressed apprehensions that STG might opt for cost reductions at the expense of consumer support. Conversely, certain Pro Tools users speculated that the move could lead to Avid reorienting its efforts towards smaller-scale users, capitalizing on the surging popularity of podcasters and independent content creators.
Learn more about Avid and Pro Tools here.