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FREMONT, Calif.--(BUSINESS WIRE)--June 28, 1999--ArcSoft, the leader in
digital imaging software and online photo services, today announced it was
declining to make a bid to acquire through the bankruptcy court the assets of
Live Picture Inc., a software company specializing in digital and Internet
imaging solutions. ArcSoft, a privately held company, had announced its
intent to purchase the assets of Live Picture last month. "We reviewed the
Live Picture assets and determined that an acquisition would not be of value
to us," said Joseph Bollentini, executive vice president and chief operating
officer of ArcSoft. "Their technology would have been a small piece in the vast
array of resources we plan on offering via the Internet, and the investment in
Live Picture would far exceed the benefit. ArcSoft is a company intent on
providing to consumers all of the digital imaging tools they need, be it an
online service or a software solution." "ArcSoft's attempt to submit a bid for
Live Picture's zoom technology was pre-empted by a secret deal previously
negotiated between Live Picture and MGI," said Jeff Stamp, attorney for
ArcSoft. "According to court transcripts, the deal for Live Picture's assets
was negotiated for several months prior to filing the bankruptcy. The sale was
then transferred to the Bankruptcy Court for approval in order to sell the
assets free and clear of any liens through what is supposed to be a
competitive bidding process."
Live Picture's withdrawal from the market leaves ArcSoft as the front-runner in
online digital imaging innovation. Bollentini indicated that the company was
exploring a variety of partnerships and said that ArcSoft would be rolling out a
full complement of Internet-based products and services later this summer.
ArcSoft provides comprehensive, easy-to-use, individual products that enable
a variety of imaging capabilities. The ArcSoft line includes ArcSoft Photo
Montage(TM), ArcSoft PhotoPrinter(TM), ArcSoft PhotoBase(TM), ArcSoft
PhotoFantasy(TM), PhotoStudio(R), VideoImpressions, MegaStitch, and
more. "Court records show that MGI is financing its proposed purchase by
selling a substantial block of its stock to a major shareholder of Live Picture,
an investment company called Perseus," said Stamp. "The sweetheart deal
allows Perseus to maintain control of the assets through MGI and to shed the
liabilities of Live Picture at the same time. The only danger to the transaction
is if any competitive bidders like ArcSoft are allowed to submit a bid."
After reviewing the proposed sale procedures, Judge Montali stated, "This
deal is by and for Perseus." In an attempt to keep the bidding process fair,
Judge Montali subsequently struck down several proposed barriers imposed
on other bidders by Live Picture and MGI. About ArcSoft
Founded in 1994 and based in Fremont, Calif., ArcSoft develops and markets
digital imaging and video software products designed for the creation of
business graphics, consumer photo editing, multimedia, and Internet
publishing. ArcSoft believes in competitively priced, high-quality software
products for the retail market. Special edition versions are also included as
dual platform (PC/Mac) bundles with popular PC and electronics products like
digital cameras, color printers and scanners. ArcSoft's OEM customers are
leading digital camera, printer, scanner and computer manufacturers. (c)
1999. ArcSoft, Inc. All rights reserved. PhotoStudio is a registered trademark
of ArcSoft, Inc. ArcSoft, the ArcSoft Logo, ArcSoft PhotoMontage, ArcSoft
Imaging Suite, ArcSoft PhotoFantasy, ArcSoft PhotoBase and ArcSoft
PhotoPrinter are all trademarks of ArcSoft, Inc. All other product names are
trademarked or registered by their respective companies. |
