Jump to content

Sign in to follow this  
Igor

MAXON & RED GIANT JOIN FORCES!!

Recommended Posts

Wow.  $77 million USD plus 15% of MAXON.  What did they pay for Redshift?  Anyone know?   It would have to be at least equal this amount.   Spending that much for Red Giant is kind of a risky move at a time when MAXON is  still trying to absorb Redshift AND changing their entire revenue model. 

 

Financially, I wonder what their debt to equity ratio is right now?  Are they starting to be cash strapped? No wonder perpetual licenses have gone up 53%.  

 

Sooo....don't expect any big changes in MAXON's prices for C4D any time soon.  They need the cash.

Share this post


Link to post

Red Giant is a lot larger than Redshift was and they are very profitable.The value of a company is determined by the value of its assets and the money they make. In both Red Giant is a lot larger than Redshift but not as large as MAXON. This is not a buyout by MAXON like with Redshift but a merger. That means the deal is between the owners of the two companies, not the two companies themself. For that reason neither does MAXON pay for Red Giant, nor does Red Giant get any money. The ownership is changing and the transfer of value is in relation to the value of the new merged company and the way the ownership is split between the parties. Since the Red Giant owners will only own 15% of the combined company in the future, instead of 100% of Red Giant, they are receiving money to compensate.

So no, MAXON is not cash strapped at all, on the contrary, we just merged with a company that is not only very good at making software, but also very good at making profits. Please don't spread unfounded rumors.

Share this post


Link to post
3 hours ago, srek said:

So no, MAXON is not cash strapped at all, on the contrary, we just merged with a company that is not only very good at making software, but also very good at making profits. Please don't spread unfounded rumors.

So maybe Nemetschek should re-word its press release:

 

n this transaction, MAXON acquires the US company Red Giant by combining a cash consideration of around EUR 70 million and granting shares in MAXON. 

 

Plus - I still see risk in handing over $77M USD at a time when MAXON is re-vamping its revenue model from sales to subscription as history has shown that this type of change always creates a short term drop in revenue with a return to profitability in 3 years.  Add to that the cost of Redshift (whatever that may be and however that transaction was being handled whether it be by stock and/or on-hand cash or debt) and any reasonable person would begin to wonder about financial risk.

 

Now, add to the financial risk is the fact that all mergers/acquisitions have some organizational risk.  Any type of acquisition or merger always creates periods of instability for both companies.  There is always some adjustments as management roles change and both companies try to figure out their place in this new relationship.   Even if the newly acquired or merged company is left alone, the fact they have been merged and/or acquired implies that there will be a change to "something" - otherwise what was the point?  So as the two companies come together, then there could be changes to long term product road maps, current product development, and/or product development teams.  It is hard to go through something like this without some loss to productivity and/or headcount changes because not every employee is always going to agree with the "new" direction and/or management structure.  That is just human nature.

 

So again, there will always be some instability as MAXON tries to absorb not one, but two merger/acquisitions within 6 months.  Now, if MAXON was a huge corporation (eg. > 5000 employees) then the risk would be less - but there is always risk.  Even huge corporations can fail at the simplest of mergers. But  MAXON is not huge - in fact they are quite small by comparison - so this will have some impact....and therefore risk.

 

Plus, the majority of us don't see the synergies behind the Red Giant "merger" right away.  That's a problem.  For example, if it was Insydium we would all go "of course" because those two companies have alignment:  X-Particles fills a big hole in MAXON's tool set.  Therefore we would not be that concerned about how well Insydium merges with MAXON because we see the synergy behind that merger.  But we don't see that with Red Giant and so we have to wonder how well this will work.

 

So this news creates questions and concerns that are quite reasonable ones to raise and not baseless rumors.  Can a small company like MAXON take on this amount of change in such a short time: change to revenue structure coupled with two big acquisitions or mergers.

 

That is a lot to put on Mr. McGavran's plate and I do wish him the best.  Despite how much I disagree with their new subscription and perpetual license models - I want MAXON to be so successful that their viability during my retirements years is a no brain-er because growing with (and being able to afford) C4D is how I I want to spend my retirement.

 

Dave

Share this post


Link to post

Good points Pangel. Add to the fact that MAXON wasn't able yet to properly implement their new license scheme (we have no rules for license transfers yet). They may want to abolish (but can't in the EU). Maybe they are waiting for Brexit to be done so the UK isn't part of the EU and UK customers can't complain. 😛

 

Joking aside, there's a lot of things still rough on the edges for the new "3D for the World" in terms of licenses, new versions, cheap monthly rental that you need to pay up-front, no Redshift integration, etc, that another big change at the same time do raises concern on how well the company will handle.

Share this post


Link to post

"Aquire" since MAXON is the larger entity and effectively gains Red Giant. And again, it is not MAXON handing over any money, it is an investment by Nemetschek. For Nemetschek 70 Millions aren't peanuts, but also not something to worry about if they see a sound investment opportunity. Just because a number looks enormous to you, and me, it does not mean that it is within the context.

Share this post


Link to post

@Pfisterer here are the news! 🙂 


| MAXON Quality Assurance Specialist | 3D Asset Creator | C4D Cafe Manager |

Share this post


Link to post
21 hours ago, Igor said:

@Pfisterer here are the news! 🙂 

Ah Thanks 🙂

Share this post


Link to post

https://www.MAXON.net/news/MAXON-news/article/MAXON-and-red-giant-merger-completed/

 

so at least this is completed. whats is next? red giant plugins can be added to c4d? particles for replacing old particles? or can we see light effects and other goods as a new post fx in c4d? to nab 2020 event nearly 2 monts. so if they planning announce anything about this implements i think they already working started for this... any inside info? there are hope for see red giant tools inside c4d?

 

Share this post


Link to post
6 minutes ago, kmls said:

https://www.MAXON.net/news/MAXON-news/article/MAXON-and-red-giant-merger-completed/

 

so at least this is completed. whats is next? red giant plugins can be added to c4d? particles for replacing old particles? or can we see light effects and other goods as a new post fx in c4d? to nab 2020 event nearly 2 monts. so if they planning announce anything about this implements i think they already working started for this... any inside info? there are hope for see red giant tools inside c4d?

 

So many possibilities! 😊


| MAXON Quality Assurance Specialist | 3D Asset Creator | C4D Cafe Manager |

Share this post


Link to post
On 2/18/2020 at 6:11 PM, kmls said:

https://www.MAXON.net/news/MAXON-news/article/MAXON-and-red-giant-merger-completed/

 

... any inside info? there are hope for see red giant tools inside c4d?

 

Inside info?  Hmmm...I think that is hoping for too much.

 

Glad to see Paul Babb getting the bump up to Global Head of Community and Customer Service (or he was there already....not sure as the last I recall he was President of MAXON American).    I met him at the Adobe/MAXON Power Integration tour through Boston many years ago.  Very humble and unassuming individual who simple introduced himself with a handshake and a simple "Hi. I'm Paul".  I had no idea who he was but he certainly knew his stuff.  From what I hear, those who report to him also hold him in high regard.  So (IMHO) he is a great fit for a role that involves the community and customer service.

 

Just my 2 cents.

 

Dave

Share this post


Link to post

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...