announced Monday that its plan to acquire digital video editing company
Media 100 Inc.
is one step closer to happening. The companies have executed
a previously announced
loan agreement that will keep Media 100’s doors open while the company files for bankruptcy.
Media 100 makes digital video editing hardware and software for the Mac and PC. It’s products include Media 100 i and the 844/X; its Media 100 HD is a new $8,000 10-bit uncompressed Standard Definition (SD) and High Definition (HD) digital video editing system aimed at video professionals.
Under the terms of the deal, Optibase is giving Media 100 up to $1 million to cover new debts the company incurs while it is reorganizing under Chapter 11 bankruptcy proceedings, or what’s called debtor-in-possession (DIP) financing. If all goes well and the court approves the deal, Optibase will buy Media 100’s assets for $2.5 million, subtracting whatever of the $1 million loan Media 100 spends in the intervening time.
Optibase CEO and Chairman of the Board Tom Wyler said in a statement that pending the court’s approval, Optibase will keep Media 100 open to develop, sell and support Media 100 products. “We strongly believe in the capabilities of the Media 100 team of employees and their vision for 844/X and Media 100 HD, and believe that with our financial strength the Media 100 line of products will be able to realize their potential.”