I'd say good.sdst wrote:Is that a good or bad news?.QVprod wrote: Ernst is still the CEO.
To strengthen expansion, Verdane invests in Propellerhead, becoming majority shareholder
- pedrocaetanos
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QVprod wrote:That 51% only becomes problematic if they disagree heavily enough. Ultimately though, they're still going to listen to the visionary. As per the press release, they intend for Ernst to lead. Sure there's the possibility that could change in the future, but the fact that they invested means they agreed with the plan and direction currently in place to begin with. Time will tell.pedrocaetanos wrote:That is trying to deny the obvious truth: once majority owners, they can do what they please, they don't need permission from the other 49%. The only limitation is that they only receive 51% of the profit.QVprod wrote:Ernst is still the CEO. Propellerhead still has creative control. That's completely different from a company being sold outright.pedrocaetanos wrote:Verdane bought the majority, now they are the boss. That's an acquisition.QVprod wrote:I think it's only fair to mention that those were acquisitions not investments. There's quite a bit of a difference.
An acquisition would be like Apple buying Emagic and Camel Audio or Avid buying Digidesign. They didn't invest and own a majority. They bought those companies out completely. It's also worth noting that both Pro Tools and Logic are doing quite fine.
Granted I believe the contract states that Ernst is to remain CEO for an X amount of time. Nevertheless, now he is there to obey the orders of the new owners. If not, the only way is to resign.
And after the X amount of time is passed, they can fire him at will.
Either way, assuming Propellerhead is going to fail because of this news is quite pessimistic. As I said, even if it was a full acquisition, Logic and Pro Tools are doing fine.
Exactly my point. Propellerhead will continue function the way they've been, just with more resources to get those big returns. Destroying it's customer base would be counter productive to that. I see nothing to worry about. Even Reason 8 (as lacking as it was) sold well.pedrocaetanos wrote:By the way: having "creative control" means "we will let you take care of the details and the worries, just as long as you deliver us the promised big profits, regardless of what it takes to get there".
OK, I totally agree with these comments of yours.
But, I never mean't to imply the Reason will disappear in the short time, I don't believe that.
When I posted those Wilipedia quotations, what I had in mind is that everything must die, the question is when.
And also that companies, just like empires or living beings, have an ascending period, a climax (the golden age), and a decay.
History has shown us that companies, when unable to keep growing/evolving beyond the golden age, tend to get sold. And that usually marks the begining of the decay.
Very often, the decay begins earlier and company is bought near bankrupcy, which saves it financially, but not in its earlier brilliancy. It is not the case, but as control slowly slips away from Ernst hands, so Propellerheadds will slowly enter it's decay age.
As many others before, it doesn't mean becomning non-profitable. It means genius fades away and only economic considerations remain.
Only a few survive beyond this stage, in an fragile balance of profits and being reknown for past glories.
Universe is a ferocius thing. Ernst sold his baby that now must start to learn growing away from the nest. Without the parent love, it's survival of the fittest. The ones that do survive get old, rinkles, often have many scars and limp. They are no longer the cute babies they once were.
In time, if Reason survives, it may become something very different not for us anymore.
I wasn't expecting Propellerheads decay to start now, If so I would have invested a lot less in REs. Quite a surprise.
Based on a true story. No Musical Instruments Were Harmed in the Making of This Forum Post. | SoundCloud set |
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I wouldn't call myself an expert, but I'm well aware of what you are talking about. There are even more complex scenarios than that: golden shares with veto rights, etc, etc.EnochLight wrote:I'm not sure you understand how boards work. As I work for one, let me explain: despite the fact that Verdane is a majority shareholder, they still need to have a majority vote on the board in order to get things done. Depending on how their By-Laws are incorporated and how many actual board members there are, this does not mean that a simple 51% vote = majority vote. For instance, the By-Laws that my board must abide by indicate that a 60%+ = majority rule. So, depending on how many board members there are, Verdane may need to sway other board members in order to have a resolution passed.pedrocaetanos wrote:That is trying to deny the obvious truth: once majority owners, they can do what they please, they don't need permission from the other 49%. The only limitation is that they only receive 51% of the profit.QVprod wrote:Ernst is still the CEO. Propellerhead still has creative control. That's completely different from a company being sold outright.pedrocaetanos wrote:Verdane bought the majority, now they are the boss. That's an acquisition.QVprod wrote:I think it's only fair to mention that those were acquisitions not investments. There's quite a bit of a difference.
An acquisition would be like Apple buying Emagic and Camel Audio or Avid buying Digidesign. They didn't invest and own a majority. They bought those companies out completely. It's also worth noting that both Pro Tools and Logic are doing quite fine.
Granted I believe the contract states that Ernst is to remain CEO for an X amount of time. Nevertheless, now he is there to obey the orders of the new owners. If not, the only way is to resign.
And after the X amount of time is passed, they can fire him at will.
Just a thought. We're all speculating here, though, so... there's that.
My understanding from what I read is that Verlano got the majority. But, as you said there is a lot of speculation in our talk.
Even so, doesn't change at all what I posted above, that this is problably a major symptom of the beginning of decay in the lifeline of Propellerheads.
One can get lots of past examples of how these acquisitions are "tragic".
How many examples can be found where the company and it's products actually became better in the long term?
Based on a true story. No Musical Instruments Were Harmed in the Making of This Forum Post. | SoundCloud set |
One can ONLY answer that question if we know the structures of the companies we're comparing, and you've already acknowledged almost everything being discussed is pure speculation. I know that Pro Tools and Logic are examples of "buy outs" that have not gone wrong, where as Oberheim and Opcode are examples of "buy outs" that HAVE gone wrong. But even with those examples there are huge differences in how the deals were structured, from the CEOs staying in place vs not in place, and so many more.pedrocaetanos wrote:I wouldn't call myself an expert, but I'm well aware of what you are talking about. There are even more complex scenarios than that: golden shares with veto rights, etc, etc.EnochLight wrote:I'm not sure you understand how boards work. As I work for one, let me explain: despite the fact that Verdane is a majority shareholder, they still need to have a majority vote on the board in order to get things done. Depending on how their By-Laws are incorporated and how many actual board members there are, this does not mean that a simple 51% vote = majority vote. For instance, the By-Laws that my board must abide by indicate that a 60%+ = majority rule. So, depending on how many board members there are, Verdane may need to sway other board members in order to have a resolution passed.pedrocaetanos wrote:That is trying to deny the obvious truth: once majority owners, they can do what they please, they don't need permission from the other 49%. The only limitation is that they only receive 51% of the profit.QVprod wrote:Ernst is still the CEO. Propellerhead still has creative control. That's completely different from a company being sold outright.pedrocaetanos wrote:Verdane bought the majority, now they are the boss. That's an acquisition.QVprod wrote:I think it's only fair to mention that those were acquisitions not investments. There's quite a bit of a difference.
An acquisition would be like Apple buying Emagic and Camel Audio or Avid buying Digidesign. They didn't invest and own a majority. They bought those companies out completely. It's also worth noting that both Pro Tools and Logic are doing quite fine.
Granted I believe the contract states that Ernst is to remain CEO for an X amount of time. Nevertheless, now he is there to obey the orders of the new owners. If not, the only way is to resign.
And after the X amount of time is passed, they can fire him at will.
Just a thought. We're all speculating here, though, so... there's that.
My understanding from what I read is that Verlano got the majority. But, as you said there is a lot of speculation in our talk.
Even so, doesn't change at all what I posted above, that this is problably a major symptom of the beginning of decay in the lifeline of Propellerheads.
One can get lots of past examples of how these acquisitions are "tragic".
How many examples can be found where the company and it's products actually became better in the long term?
Again, all in good fun but there can be no real conclusions or points made in this thread that are not mostly based on speculation. Basically this is classic "arm chair quarterbacking" (back seat driving?) going on here IMO — loads of fun, but to no real end.
I can't affect ANY of this so I'm just going to sit back and enjoy the show, and will react to what actually happens instead of what MIGHT happen.
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Agreed. I'm along for the ride, either way!selig wrote:I can't affect ANY of this so I'm just going to sit back and enjoy the show, and will react to what actually happens instead of what MIGHT happen.
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Serious?? I was precisely thinking just one layer might not be enough and preparing to go out and get more! Damn, I'm doomed !!RandomSkratch wrote:There's a tinfoil shortage happening right now because of this thread...
You know, since beginning of times, human being as always wondered what the future will be, what lies ahead, and that has nothing to do with paranoia.
And apart from "black swan" events that transform the world, past can teach us a lot about the future.
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I seriously doubt that VC Verdane bought a majority control of Propellerhead, just to have potential board infighting on decision making. They run the show. "Once Verdane funds have acquired a company, Verdane Capital Advisors’ team will help it develop and grow."EnochLight wrote: I'm not sure you understand how boards work. As I work for one, let me explain: despite the fact that Verdane is a majority shareholder, they still need to have a majority vote on the board in order to get things done. Depending on how their By-Laws are incorporated and how many actual board members there are, this does not mean that a simple 51% vote = majority vote. For instance, the By-Laws that my board must abide by indicate that a 60%+ = majority rule. So, depending on how many board members there are, Verdane may need to sway other board members in order to have a resolution passed.
That said, I'm sure that they would take Ernst's experience and advice in the music software seriously in the short term.
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Well, was Reason was brilliant for desktop computer musicians, no doubt. Desktop is slowly dying though, so you're right that there is no huge growth there long term. Short term there's still space to eke out some decent profits, if you are already established. Which Propellerhead is.pedrocaetanos wrote:And also that companies, just like empires or living beings, have an ascending period, a climax (the golden age), and a decay.
History has shown us that companies, when unable to keep growing/evolving beyond the golden age, tend to get sold. And that usually marks the begining of the decay.
Very often, the decay begins earlier and company is bought near bankrupcy, which saves it financially, but not in its earlier brilliancy. It is not the case, but as control slowly slips away from Ernst hands, so Propellerheadds will slowly enter it's decay age.
As many others before, it doesn't mean becomning non-profitable. It means genius fades away and only economic considerations remain.
Only a few survive beyond this stage, in an fragile balance of profits and being reknown for past glories.
Universe is a ferocius thing. Ernst sold his baby that now must start to learn growing away from the nest. Without the parent love, it's survival of the fittest. The ones that do survive get old, rinkles, often have many scars and limp. They are no longer the cute babies they once were.
In time, if Reason survives, it may become something very different not for us anymore.
I wasn't expecting Propellerheads decay to start now, If so I would have invested a lot less in REs. Quite a surprise.
They haven't even begun the mobile journey yet. Just ReBirth and Thor, so far. Big growth here with mobile Reason and expansion packs.
VC groups only exist to make money. They don't care about users. All they care about is company's balance sheets so that they can eventually sell their investment for a profit in the end. In the pro music business quite a few products have been discontinued after being bought out by large investors. The Logic, Pro Tools and Cubase acquisitions only worked out because they were bought by companies like Avid, Yamaha and Apple with long term strategic interests in the music business. They were not bought by an investment group that simply wants to make a quick buck then move on.EnochLight wrote:Again, it won't happen. Relax.Faastwalker wrote:This worries me as well. Reason barely works without Internet access and / or constant updating via the Authorizer. If Reason does go the way of the Dodo (nothing good last forever) where would this leave us?! If it does continue to work there will come a time when it no longer will. That's a very sad thought, although hopefully unlikely. I guess I'm just very nervous about change. There are no certainties, less so now, or so it feels.EnochLight wrote:This will not happen.Data_Shrine wrote:The problem is, if they kill and bury them, the authorizer wont work anymore, we will lose everything when our "reason" computer dies out (or if we update the OS on mac..) So that's scary. ;_;
As pointed out already, a VC group doesn't pay millions for a company and its flagship product just to kill it off. Whatever happens, it's more likely that a solution would be offered to keep Reason (and its ecosystem) a reliable cash cow. Breaking its authentication (which has proved impossible to crack to date) and pissing off all of its license owners (us) is not how to do that.
Maybe Ernst is actually looking for a way out by gradually selling his company? In any case if in a few years time if this gamble doesn't quite pay off financially the consequences could be serious for Reason users.
Last edited by miscend on 11 Apr 2017, edited 1 time in total.
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EnochLight wrote:We're all speculating here, though, so... there's that.
Since we are all speculating, I'd say that Verdane owns considerably more than the "more than 60%" figure that came out from one online article.selig wrote:Again, all in good fun but there can be no real conclusions or points made in this thread that are not mostly based on speculation. Basically this is classic "arm chair quarterbacking" (back seat driving?) going on here IMO — loads of fun, but to no real end.
More than 60 can mean 65. Or 85. Or 95%. Maybe even 99%
It's not 100, since Ernst does own a minority stake.
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Well, it's good for now. His music business experience will help in the short term. His days are numbered though.sdst wrote:Is that a good or bad news?.QVprod wrote: Ernst is still the CEO.
Generally Verdane puts in their own people to run the show. Check their case studies:
http://www.verdanecapital.com/case-studies
*"Strengthened the management team with new hires, including CEO, CFO and customer support manager positions."
*Also, recruited a new chairman of the board and recruited for other management positions, including CEO from Verdane funds’ network
Ernst could even be paid by Verdane now to be figurehead for Propellerhead as well. I'm sure NDA is in effect.
Can't demoralize the Propellerhead software team.
Or even paying customers.
.
RandomSkratch wrote:There's a tinfoil shortage happening right now because of this thread...
Yeah..... but it does make for an interesting read. Plus some of these discussions is like therapy for all us nervous users.
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Don't they have a "nuclear option"?EnochLight wrote:I'm not sure you understand how boards work. As I work for one, let me explain: despite the fact that Verdane is a majority shareholder, they still need to have a majority vote on the board in order to get things done. Depending on how their By-Laws are incorporated and how many actual board members there are, this does not mean that a simple 51% vote = majority vote. For instance, the By-Laws that my board must abide by indicate that a 60%+ = majority rule. So, depending on how many board members there are, Verdane may need to sway other board members in order to have a resolution passed.pedrocaetanos wrote:That is trying to deny the obvious truth: once majority owners, they can do what they please, they don't need permission from the other 49%. The only limitation is that they only receive 51% of the profit.QVprod wrote:Ernst is still the CEO. Propellerhead still has creative control. That's completely different from a company being sold outright.pedrocaetanos wrote:Verdane bought the majority, now they are the boss. That's an acquisition.QVprod wrote:I think it's only fair to mention that those were acquisitions not investments. There's quite a bit of a difference.
An acquisition would be like Apple buying Emagic and Camel Audio or Avid buying Digidesign. They didn't invest and own a majority. They bought those companies out completely. It's also worth noting that both Pro Tools and Logic are doing quite fine.
Granted I believe the contract states that Ernst is to remain CEO for an X amount of time. Nevertheless, now he is there to obey the orders of the new owners. If not, the only way is to resign.
And after the X amount of time is passed, they can fire him at will.
Just a thought. We're all speculating here, though, so... there's that.
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Well, they exist to make money, yes, but in the software business you are paying for the brains that code.miscend wrote:VC groups only exist to make money. They don't care about users. All they care about is company's balance sheets so that they can eventually sell their investment for a profit in the end.
It's not in their best interests to slash and burn and demoralize the software team, so that the team starts not giving a shit and starts to put out buggy, not well thought out code that no one will want anymore. Reason has been pretty stable so far.
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I was under the impression Pro Tools got a lot critics after AVID got in charge, and that it simply stays around as top dog because it dominates as the "de facto" studio standard. But I'm not a user, maybe I'm wrong.selig wrote: One can ONLY answer that question if we know the structures of the companies we're comparing, and you've already acknowledged almost everything being discussed is pure speculation. I know that Pro Tools and Logic are examples of "buy outs" that have not gone wrong, where as Oberheim and Opcode are examples of "buy outs" that HAVE gone wrong. But even with those examples there are huge differences in how the deals were structured, from the CEOs staying in place vs not in place, and so many more.
Again, all in good fun but there can be no real conclusions or points made in this thread that are not mostly based on speculation. Basically this is classic "arm chair quarterbacking" (back seat driving?) going on here IMO — loads of fun, but to no real end.
I can't affect ANY of this so I'm just going to sit back and enjoy the show, and will react to what actually happens instead of what MIGHT happen.
Logic may be the positive example I couldn't think of. Well, if it has happened once n history, it may happen again - call me the crazy prophet of doom, then
(with a tinfoil, some say )
Opcode I don't remember the details, but Oberheim was facing bankrupcy, a much, much, worst situation than Propellerheads (for which there is no sign at all that it may be unealthy). Same as others that had the sad ending of "buy outs": ARP, Moog, Sequential...
Sequential did manage to retain some glimpses of it's technology inside Korg and Yamaha.
The long death of the manificent Oberheim may have been the saddest.
I can't affect much the outcome of this thread, much less the destiny of Reason and Propellerheads.
It would have been wiser to stay out of this... my fascination with the past and the future got me here, however
Based on a true story. No Musical Instruments Were Harmed in the Making of This Forum Post. | SoundCloud set |
I myself would say that I do not like Avid as a company and I do feel that they cripple Pro Tools from being at it's fullest potential simply by their business model. But the reason they still do well with Pro Tools is more so because of the HD systems for tracking. Other manufacturers are only recently being able to match that with audio interfaces like the Focusrite Clarett allowing you to track through native plugins with low latency. UAD got close with the dsp card and later Apollo, but the workflow is still quite different. That helps keep it as the industry standard and artists starting out with home recording tend to buy it because they've never heard of anything else.pedrocaetanos wrote:I was under the impression Pro Tools got a lot critics after AVID got in charge, and that it simply stays around as top dog because it dominates as the "de facto" studio standard. But I'm not a user, maybe I'm wrong.selig wrote: One can ONLY answer that question if we know the structures of the companies we're comparing, and you've already acknowledged almost everything being discussed is pure speculation. I know that Pro Tools and Logic are examples of "buy outs" that have not gone wrong, where as Oberheim and Opcode are examples of "buy outs" that HAVE gone wrong. But even with those examples there are huge differences in how the deals were structured, from the CEOs staying in place vs not in place, and so many more.
Again, all in good fun but there can be no real conclusions or points made in this thread that are not mostly based on speculation. Basically this is classic "arm chair quarterbacking" (back seat driving?) going on here IMO — loads of fun, but to no real end.
I can't affect ANY of this so I'm just going to sit back and enjoy the show, and will react to what actually happens instead of what MIGHT happen.
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Reality is Props have not been turning over massive profit and have struggled of late. Thats how Verdane were able to purchase the majority share in the company.
Verdane control the company and Ernst no longer has control. "Ernst will lead the company". Let me translate in plain English. Verdane is Ernst new boss
What that means going forward is anyones guess. Looks like they will focus on the mobile market which is a bit concerning for me(thinking of apps like figure and the whole allihoopa idea which i can't stand), however Reason IPad version must be just around the corner(which is not entirely bad in my opinion) I always thought Reason could translate well to iPad version.
One thing is for sure Verdane could sell Props to anyone they please tomorrow if they like.
There does seem to be a bit of naivety on the forum with regards how private equity funds operate and their purpose.
Verdane control the company and Ernst no longer has control. "Ernst will lead the company". Let me translate in plain English. Verdane is Ernst new boss
What that means going forward is anyones guess. Looks like they will focus on the mobile market which is a bit concerning for me(thinking of apps like figure and the whole allihoopa idea which i can't stand), however Reason IPad version must be just around the corner(which is not entirely bad in my opinion) I always thought Reason could translate well to iPad version.
One thing is for sure Verdane could sell Props to anyone they please tomorrow if they like.
There does seem to be a bit of naivety on the forum with regards how private equity funds operate and their purpose.
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Maybe they weren't struggling. Their growth in personnel seems to have been slow throughout the years, most likely accompanying user base growth. Possibly they could remain with a steady income... unless they are running out of tasty ideas for future upgrades, and the RE shop profit percentage isn't enough to keep the company floating. Between these two scenarios is really wild speculation.noelcampbelljnr wrote:Reality is Props have not been turning over massive profit and have struggled of late. Thats how Verdane were able to purchase the majority share in the company.
Verdane control the company and Ernst no longer has control. "Ernst will lead the company". Let me translate in plain English. Verdane is Ernst new boss
What that means going forward is anyones guess. Looks like they will focus on the mobile market which is a bit concerning for me(thinking of apps like figure and the whole allihoopa idea which i can't stand), however Reason IPad version must be just around the corner(which is not entirely bad in my opinion) I always thought Reason could translate well to iPad version.
One thing is for sure Verdane could sell Props to anyone they please tomorrow if they like.
There does seem to be a bit of naivety on the forum with regards how private equity funds operate and their purpose.
The way I guess it, maybe simply Ernst is tired, thinking about retirement, and the absence of massive profits didn't allow for a really, really comfortable retirement. Problem solved now. Still speculation, nevertheless.
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Props not turning over a massive profit is not speculation at all. Its facts. Check https://www.ratsit.se/5565462206-Propel ... Aktiebolagpedrocaetanos wrote:Maybe they weren't struggling. Their growth in personnel seems to have been slow throughout the years, most likely accompanying user base growth. Possibly they could remain with a steady income... unless they are running out of tasty ideas for future upgrades, and the RE shop profit percentage isn't enough to keep the company floating. Between these two scenarios is really wild speculation.noelcampbelljnr wrote:Reality is Props have not been turning over massive profit and have struggled of late. Thats how Verdane were able to purchase the majority share in the company.
Verdane control the company and Ernst no longer has control. "Ernst will lead the company". Let me translate in plain English. Verdane is Ernst new boss
What that means going forward is anyones guess. Looks like they will focus on the mobile market which is a bit concerning for me(thinking of apps like figure and the whole allihoopa idea which i can't stand), however Reason IPad version must be just around the corner(which is not entirely bad in my opinion) I always thought Reason could translate well to iPad version.
One thing is for sure Verdane could sell Props to anyone they please tomorrow if they like.
There does seem to be a bit of naivety on the forum with regards how private equity funds operate and their purpose.
The way I guess it, maybe simply Ernst is tired, thinking about retirement, and the absence of massive profits didn't allow for a really, really comfortable retirement. Problem solved now. Still speculation, nevertheless.
Verdane now own and control Props. What that means in the next few years is guess work.
What is certain is how private equity funds operate and they will sell on Props when they feel they can maximise their return.Where that leaves Props and Reason software in the future is unknown. It depends on who Verdane sell the company on to and for what purpose the company is bought.
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Between the two languages (google-trans-swedish and corporate-accounting-speakish) I din't grasp all the details, but seems to me some years of losses and some debts. They don't seem to be sinking, but merely fluctuating, and not in a luxury liner. More a raft sometimes covered by the waves.noelcampbelljnr wrote: Props not turning over a massive profit is not speculation at all. Its facts. Check https://www.ratsit.se/5565462206-Propel ... Aktiebolag
Verdane now own and control Props. What that means in the next few years is guess work.
What is certain is how private equity funds operate and they will sell on Props when they feel they can maximise their return.Where that leaves Props and Reason software in the future is unknown. It depends on who Verdane sell the company on to and for what purpose the company is bought.
The rest is the naked truth about private equity funds.
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stratatonic wrote: I seriously doubt that VC Verdane bought a majority control of Propellerhead, just to have potential board infighting on decision making. They run the show. "Once Verdane funds have acquired a company, Verdane Capital Advisors’ team will help it develop and grow."
That said, I'm sure that they would take Ernst's experience and advice in the music software seriously in the short term.
miscend wrote: VC groups only exist to make money. They don't care about users. All they care about is company's balance sheets so that they can eventually sell their investment for a profit in the end. In the pro music business quite a few products have been discontinued after being bought out by large investors. The Logic, Pro Tools and Cubase acquisitions only worked out because they were bought by companies like Avid, Yamaha and Apple with long term strategic interests in the music business. They were not bought by an investment group that simply wants to make a quick buck then move on.
stratatonic wrote: Since we are all speculating, I'd say that Verdane owns considerably more than the "more than 60%" figure that came out from one online article.
More than 60 can mean 65. Or 85. Or 95%. Maybe even 99%
It's not 100, since Ernst does own a minority stake.
Very good research, and insightfull comments, about what I think.stratatonic wrote: Well, it's good for now. His music business experience will help in the short term. His days are numbered though.
Generally Verdane puts in their own people to run the show. Check their case studies:
http://www.verdanecapital.com/case-studies
*"Strengthened the management team with new hires, including CEO, CFO and customer support manager positions."
*Also, recruited a new chairman of the board and recruited for other management positions, including CEO from Verdane funds’ network
Ernst could even be paid by Verdane now to be figurehead for Propellerhead as well. I'm sure NDA is in effect.
Can't demoralize the Propellerhead software team.
Or even paying customers.
However looking back at past buy-outs what usually happens is that with time new managent comes in, with coins in place of the eyes, and start alienating the best human assets of the company with decisions based only on quick and easy profit (and often fail on that objective due to new spiritless products).stratatonic wrote:Well, they exist to make money, yes, but in the software business you are paying for the brains that code.miscend wrote:VC groups only exist to make money. They don't care about users. All they care about is company's balance sheets so that they can eventually sell their investment for a profit in the end.
It's not in their best interests to slash and burn and demoralize the software team, so that the team starts not giving a shit and starts to put out buggy, not well thought out code that no one will want anymore. Reason has been pretty stable so far.
I easily see a future where reason is no longer rock-solid.
True that desktop is slowly dying, but I still can't see tablets et al capable of the same productivity, both in terms of variety of tasks, and in time spent to achieve something. Maybe in time that will invert, but I still think desktop will stay around for quite some years, although as time goes by, more and more a niche thing. Obviouslly that will make the hardware and the software more expensive which will accelerate it's eventual death. Probably this changing of ownership has everything to do with that.stratatonic wrote:Well, was Reason was brilliant for desktop computer musicians, no doubt. Desktop is slowly dying though, so you're right that there is no huge growth there long term. Short term there's still space to eke out some decent profits, if you are already established. Which Propellerhead is.
They haven't even begun the mobile journey yet. Just ReBirth and Thor, so far. Big growth here with mobile Reason and expansion packs.
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- fieldframe
- RE Developer
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I can think of a number of companies more likely than Microsoft.Kategra wrote:I wouldn't be surprised if Microsoft acquires it.
At the top would be the pro audio equipment giants. Which ones currently don't own a DAW? Then are the smaller companies that make music software. Ableton, possibly? We've seen Ernst and Gerhard in the same video...
After that you're probably looking more at mergers than acquisitions, with less established companies. I could see Propellerhead and their Swedish neighbors Teenage Engineering joining forces... come to think of it, why not? Seems like they'd be perfect for each other, the best Swedish music hardware company and the best Swedish music software company. Can you imagine a specialized Reason controller from TE? Or a hardware-based sequel to Figure?
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