The more I ponder it, the more it becomes apparent that Avid is about to undergo significant changes. A new CEO with experience in the the private equity world was not likely brought in to maintain the status quo.
Last year a group of private equity investors were looking to take Avid private. The rumored plan was to sell off video unit to Thompson or Autodesk, send the consumer stuff to Corel, and find a home for storage with Dell, EMC, or some other player in the enterprise storage market. That would leave Avid with just audio – not a bad thing. It’s the only area where Avid has a strong brand throughout the market from consumer (M-Audio) to pro (DigiDesign). The newer, streamlined audio company could then go public after a year or two, and everyone would pocket a chunk of change.
The landscape remains much the same. Such a plan has surely crossed the new CEO’s mind. I can’t imagine many shareholders having a problem with this strategy after the recent years of share price stagnation.