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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: BillyG who wrote (37140)	11/6/1998 7:42:00 PM
From: J Fieb	Read Replies (3) \| Respond to of 50808

Avid is always in print with the big names...... Avid Technology, Inc. to Acquire SOFTIMAGE Subsidiary of Microsoft Corporation der the terms of the transaction, the total value of the consideration to be paid by Avid to Microsoft and to employees of SOFTIMAGE in substitution of their stock options is valued at $285 (U.S.) million. This will consist of cash, a subordinated note, Avid common stock, and a warrant and options to purchase Avid common stock. Microsoft will receive $79 million in cash, a subordinated note in the amount of $5 million, Avid common stock valued at $93 million, and a warrant valued at $32 million. The Avid common stock in the transaction will consist of approximately 2.344 million shares valued at $39.71 per share. The warrant, which has a life of ten years and is exercisable beginning in the third year, will permit Microsoft to purchase 1.155 million shares of Avid common stock at $47.65 per share. Upon completion of this transaction, Microsoft will own approximately 9.1 percent of Avid outstanding common stock, excluding the unexercised warrant. As part of the agreement, Microsoft has agreed not to purchase any additional shares of Avid common stock for a period of five years. Furthermore, as a demonstration of Microsoft's commitment to the strategic alliance, Microsoft has agreed to maintain its investment for a minimum of three years.......... So MSFT's holdings came as a payment for a purchase, but maybe MSFT wants the final product that will come from this union. The warrants are for ten years and have a 47.65 price tag on them. Bullish! That happened after that speech in March '98. In March of '97 INTC bought 6% of AVID and jump started their stock price.... avid.com Then in August of '98 AVID bought 500,000 of the shares back from INTC avid.com So the shares they bought back from INTC almost immediately go off MSFT. I wonder if AVID tried real hard they could simplify their products enough to go from a few thousand seats to a bigger market along with the help of a good video encoder? If they don't do it ULead and many others will.