|
|
MARCH 01, 2004 DMN Interview: Media 100 in Crisis After editing system manufacturer Media 100 announced it was on the verge of ceasing operations last week, the company revealed today that Israel-based Optibase was interested in buying the Marlboro, Massachusetts corporation, and had signed a term sheet outlining the conditions of the sale. Digital Media Net’s Charlie White talked with Media 100’s CEO John Molinari about the company’s current crisis and what it means for users of Media 100 products. DMN: It looks like there’s a little break in the clouds here. Can you tell us about what this means for Media 100 and for the people who own Media 100 equipment? Molinari: Optibase is proposing to buy the company, and ultimately I think that’s very good for the employees, customers, channel partners and other partners of Media 100. 844/X is just a superlative product. I don’t think anybody gain-says that. However, customers, understandably have felt that there’s some risk with Media 100 as a supplier because we haven’t had the same balance sheet that we have had historically. And this deal gives us the strongest balance sheet we’ve had in our entire history. So now we can compete in the marketplace with great technology, great products like 844/X and now Media 100 HD, backed by a very strong balance sheet. And that’s just very, very good news in my opinion for all concerned. DMN: What are the chances of this actually happening? I noticed in your statement that there were contingencies that had to be met for this to happen. What would keep this transaction from being completed? Molinari: Let me answer that question by saying what we’ve done. We’ve signed a term sheet. This is a standard first step in bringing two companies together. This term sheet, like most term sheets, is non-binding. But the fact is, Optibase and Media 100 have been working very hard at this now, and it stands a very good chance of going forward, with the caveat that these things can always fall apart. But my feeling is that there’s reason to be optimistic. We’re very enthusiastic about the work we’ve done to date with Optibase and the future we see as a unit of Optibase – not so dissimilar from when we were a unit of Data Translation. [an error occurred while processing this directive] DMN: Optibase is based in Israel, right? But don’t they have an office quite near you in Massachusetts? Molinari: Optibase is headquartered in Israel. They have an operating unit headquartered in Mountain View, California. They have offices around the world. Indeed, they have one here in Danvers, Massachusetts. So there are synergies that we’re going to be able to take advantage of as well, in that they have people and strengths in parts of the world where we don’t have a physical presence. So it’s a good combination, I think. DMN: Did Optibase approach you, or did you approach them, and when did this begin? Molinari: As a public company, Media 100 is always talking to people. I can’t even recollect exactly, precisely how we came together, but obviously I’ve known about Optibase for many years. They’ve known about us, and we’ve talked in the past about bringing together their encoder technology with our content design systems. This was finally a point in time where it made sense to take the combination very seriously. DMN: If you weren’t able to make a profit with Media 100, how can Optibase do it? Why did this happen, and what’s going to be done differently under the wing of Optibase at this point? Molinari: Well, the chief obstacle we’ve had in the marketplace is the lack of a balance sheet. We hear this directly from end users, prospects looking at the product, even from our channel partners. So the first and most important thing Optibase gives us is tremendous financial backing. And that’s going to help us continue to grow sales of 844/X. Not least by eliminating altogether any fear that we’re not going to be around. We’re talking about having greater than $55 million in cash on our balance sheet. So we’re going to roar ahead with our product roadmap. We’re going to roar ahead with sales and marketing of this product, and I think we’ll rapidly grow sales, to the point where – we’ve always been very close to cash break-even. That’s obviously going to be a near-term goal that we want to reach and achieve.
1 2 3 Next Related sites: • Broadcast Newsroom • Creative Mac • Digital Post Production • Digital Producer • Digital Video Editing • DTV Professional • HDTV Buyer • IBC News Related forums: [an error occurred while processing this directive] 
|