Microsoft Corporation sold its SOFTIMAGE subsidiary on Monday to Avid Technologies for $285 million in cash and stock. Under the terms of the agreement, Microsoft will own about 9% of Avid's outstanding common stock. SOFTIMAGE was bought by Microsoft in 1994; The company produces extremely high-end video and graphics solutions that are typically used by the film and television industries.
"This deal is a win-win for all involved," said Craig Mundie, the senior VP of Microsoft's consumer platform division. "Avid gains the benefit of rapid expansion into the 3D market, a video production solution which ideally complements its current offerings, and a stronger alliance with Microsoft. Microsoft gains a strategic ally for continued development on Windows NT and our digital media initiatives.