Native Instruments and Izotope team up

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Well only time can tell with what happens. I wish them the best. I still use Maschine MK 3 even after the honeymoon period

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me too. And hopefully for years to come :slightly_smiling_face:

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Doesn’t make a whole lot of sense to me?

EDIT: ahaaaa! Izotope has a SaaS subscription platform… now it starts making sense…

It’s always interesting how the management announces such take-overs …

… just for fun :wink: … let’s imagine …

Two thousand years in the past it would be like a chief of a Germanic or Breton tribe would stand up and say … “…we are proud to be conquered by the Roman Empire and excited to do their bidding in a glorious future to come …”

… :thinking:

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http://t.news.izotope.com/r/?id=h25c905b9%2C739b954%2C73ac898&s=8d_ff4AxQnJrlmyCWyJ6FxJXLCLl26XxLk_FFEkh_xY

Quantity Overlords.

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… it would be like two former hostile groups agreeing to cooperate to develop a fresh water aqueduct, and develop agriculture, to improve trade with other groups over there, and profit from that trade.

This is an alliance not a hostile takeover. From what I read they are starting a third company, and raising capital to fund the growth of that third company. The reason likely to start a third company is to isolate NI and iZotope corporate from the financial risks involved in this startup — specifically the venture firm won’t be able to go after NI or iZotope to recover the debt should this fail. But should it succeed a proportion of the benefit will accrue to these two companies.

The reason you take on debt like this is that you are preparing to grow faster than is possible by merely using the income streams of these two companies alone.

This certainly could be a start toward a merger, but it doesn’t have to be. There is another thread here, talking about Companies that Collaborate, for mutual benefit — and this looks like it could be prime example of those sorts of collaboration.

I’d say that this could make a lot of sense, given the similarity in products between these two companies, and the ways those products could be made to work together, adding value to both. I look forward to seeing the results of this collaboration.

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Time will tell … but I was speaking generally :wink:

If I understood the news correctly, there was a third party of investors, which seems to be behind the move. Some investors do business to make money only and to maximize profit. This has brought many creative companies to the grave.

One example would be Gibson buying a couple of companies … until getting in troubled water and before the recent change in top management.

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Really hoping to pick up Massive for $437 off one day, or $9.99 the next day

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I absolutely agree ! They don’t get called “Vulture Capitalists” without reason. These sorts of deals are often, crawling with lawyers all taking their fees. NI and iZotope, will have their lawyers too, and their job will be to minimize the risk, and maximize the gain. This can really pay off for the companies involved, and that’s why they will willingly pursue this sort of thing.

One of the risks when accepting tens of millions in investment money, is getting intoxicated from all the cash, and not spending it wisely. There is a real lure to go for the fancy office building, and fleets of expensive company cars, and things that aren’t productive investments. Often times you just hire people in a rush, and aren’t careful to get the right people. Part of the reason these sorts of deals may happen right now is money is cheap, the low interest rates means cash flows pretty freely.

But be sure of something else, NI and iZotope, have put together a highly detailed plan, with some very attractive ideas, with a series of products, and projected sales and growth, to be able to attract this sort of investment. It’s a very exciting thing to be involved with. Both companies have had good growth, for an extended time, and so if you’re on the inside of this you feel confident and excited.

You are absolutely right, we shall see. I’d expect a timeline of something like 18 months to two years to see products, and we will likely hear announcements in between now and then. Whether it’s a success or failure will likely take quite a bit longer to decide.

I wonder if this will involve hardware, or if it is a mostly a software thing? It was suggested that this may involve some sort of subscription service, we shall see, results on that sort of approach have been mixed, but it’s possible.

Watch for the recruiting coming soon. (Anyone want an exciting job ?) The people they hire might help show what they are planning.

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Indeed … and let me add … whether both move to a subscription models as major source of revenue.

IMO almost any big software company moving to subscription models seems to have reached the pinnacle of their product line and creativity to improve the products such that informed customers will consider and buy upgrades has lost impact. It seems that bug-fixes and sometimes new gadgets are paid for, but not a great new feature.

I know/have some software products, which I would see as finished and complete a decade ago, no really exciting new feature delivered, but the developers try to get money … like a pension :wink:

Okay … okay … rant over … :blush:

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Don’t want to make a new topic for this…

NI Komplete is a subscription service now.

That’s why Metric Halo is still selling ChannelStrip3 from 2013 as channelstrip 3. It’s the same plugin with minimal fixes.

What’s nuts is the SSL channel strip in komplete is good for mixing if you put in the time.