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Breaking News: Autodesk Buys Softimage


Jeff Mottle
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Autodesk Signs Agreement with Avid Technology to Acquire Softimage

http://www.softimage.com/press/releases/2008/081023_adsk.aspx

 

Autodesk Signs Agreement with Avid Technology to Acquire Softimage

http://usa.autodesk.com/adsk/servlet/item?id=12022457&siteID=123112

 

Avid Announces Third Quarter 2008 Results and Continued Business Transformation

http://www.marketwire.com/press-release/Avid-Technology-Inc-NASDAQ-AVID-913193.html

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Holy Guacamole Batman! Can you say Monopoly?

 

Not really. The 3D industry is pretty big and SI is only a small fraction of that. There are still companies like Bentley, Dassault Systems etc. They have most of the M&E market, but as far as 3D is concerned, not a monopoly yet.

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LOL! Got the "news flash" from Autocad, and immediately went here to see the fallout. :) Quite shocking, but then again, Autodesk seems to be snapping up a lot of programs lately. Still...

 

The optimist in me thinks that perhaps the autodesk/softmirage combined forces will come out with a super program to rule them all. However, the skeptic in me thinks that this super program probably will not have any real competitors and Autodesk will begin to demand critical appendages in exchange for said software. ;)

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I wonder if this is related to the recent event where questionable AutoDesk people were phoning/emailing people, asking if they wanted to upgrade/renew...

 

CEO: "We want to buy more 'stuff'."

CFO: "Sir, we need more money. The economy is in a downward..."

CEO: "You're fired! You! I want to buy more 'stuff'."

(new) CFO: "Well, we could ring up our existing customer base and encourage them to renew their licenses and buy upgrades?"

CEO: "You just got a bonus!"

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A quick observation about how to view this turn of events. Autodesk's Market Cap is currently 5.16 billion, the Softimage purchase was for 35 million. This was a fire sale for Avid (who many think only bought Softimage to get the Softimage|DS). This is a tiny blip on the Autodesk screen.

 

I am betting that they will take the same strategy they have taken with Maya and keep it separate, with some integration through FBX.

 

Spending Time at AU (with 10,000 others) it is amazing how many Autodesk consumers have never heard of Max, Maya let alone used them. Purchasing softimage seems like a seismic event in our industry but to the rest of the Autodesk community (inside and outside the company) it is a tiny ripple.

 

My 2¢

 

-Nils

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Purchasing softimage seems like a seismic event in our industry but to the rest of the Autodesk community (inside and outside the company) it is a tiny ripple.

 

-Nils

 

Just curious, was the Rays (my town) defeat of the Red Sox (your town) last week a seismic event or a tiny ripple for you? :D

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A quick observation about how to view this turn of events. Autodesk's Market Cap is currently 5.16 billion, the Softimage purchase was for 35 million. This was a fire sale for Avid (who many think only bought Softimage to get the Softimage|DS). This is a tiny blip on the Autodesk screen.

 

I am betting that they will take the same strategy they have taken with Maya and keep it separate, with some integration through FBX.

 

Spending Time at AU (with 10,000 others) it is amazing how many Autodesk consumers have never heard of Max, Maya let alone used them. Purchasing softimage seems like a seismic event in our industry but to the rest of the Autodesk community (inside and outside the company) it is a tiny ripple.

 

My 2¢

 

-Nils

 

Agree 100%

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and the lesson of this story is: Don't let it happen to you, your life and work you do to be owned by autodesk that is.

 

Hmmm...I agree it's not good to sell out. But, keep in mind that that is usually the point of creating a technology company. Most investors that fund these types of companies want to have an exit strategy. Also, when a big company like Autodesk wants to rule the market they will pay top dollar to do it. For example, a tech company is usually worth a multiplier of 2x or 3x revenue. If Autodesk offers 4x to get the potential competitor out of the way or prevent a bigger one (Bentley, Dassault) from gaining advantage, then it would be foolish for Softimage not to sell or Autodesk not to buy. This is a win win for both of them and that's why these transactions occur.

 

Ultimately, none of this will affect us in a negative way even though it does appear intimidating to see Autodesk gobbling up companies.

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question for ya...

if you were the only runner in a race...how fast would you run ?

 

quoted for 100% agreement

 

Everytime AD has taken a hold of an app they give it 25% of thier attention, if that. Example you say? Combustion 2008 was suppose to be this big turn around for it. It hasnt had an update in so long it was very close to being dead, so what does AD do. They take the coders that were working on it and put them on Toxik.

 

Make no mistake about it. Autodesk is the devil. If they own all the major apps, then there is no more comeptition. Competition is good, it keeps artists and companies on thier toes. I wouldnt put it past AD for a second, to start killing off some of the apps. Mainly XSI. This is just my thoughts on this

 

 

 

 

"Please to meet you. Hope you guess my name"

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