Marlboro, Mass.-based digital video editing system maker
announced on Monday that it has executed a non-binding term sheet to sell substantially all its assets to
as part of a prepackaged bankruptcy.
Media 100 said the deal will allow it to develop, sell and support its 844/X, Media 100 HD, Media 100 i and other products. Media 100 HD is the first implementation of the company’s 844/X hardware-based digital video editing platform to be available for the Macintosh. Media 100 i is a software-based digital video editing solution that runs on the Mac as well.
Optibase makes professional video solutions including MPEG encoding cards, IP-based TV streaming products, multiplexers and software. Most of its products run on Windows operating systems.
Under the terms of the deal, Optibase will provide up to US$1 million in a debtor-in-possession loan, and buy all of Media 100’s assets for $2.5 million (less the amount of any debtor-in-possession funding advanced). Optibase said it’s unlikely that Media 100 stockholders will get anything out of the deal.
Media 100 President John Molinari said that the deal was “timed well” to support his company as it prepares to deliver Media 100 HD to the Power Mac G5 platform. The news of Optibase’s acquisition comes only a week after Media 100 announced that it
or it would be forced to close its doors.
Media 100 cautioned that the acquisition is subject to various contingencies including the approval of the bankruptcy court. If the deal falls through, Media 100 still might be forced to cease operations.