Avid is exploring a possible sale, according to a report in Reuters.
The company is currently working with Goldman Sachs and is seeking binding offers, according to Reuters’ sources.
After the Reuters story, Avid’s stock jumped by 18% giving the company a market valuation of around $1bn.
In first quarter earnings, Avid upped its active paid for subscriptions by 22% year on year but because it missed analyst expectations, its share price dropped almost 20%.
During its recent quarterly earnings call, Avid ceo Jeff Rossica, said that supply chain issues had created “substantial and unexpected gross margin headwinds for audio hardware,”
Reuters’ sources said that no deal is yet certain.
Jon Creamer
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