For tech stock Avid Technology (NASDAQ:AVID), the news that it might be up for sale was the best thing its investors had heard in quite some time. Sufficiently good news to propel Avid’s share price well into double-digit percentage gains.
Avid Technology, which makes editing software for both video and audio applications, is currently working with Goldman Sachs to set up a process by which it ends up sold to some other company. It’s looking for binding offers, noted a report from Reuters. Given that Avid has a market value of somewhere around $1 billion, any offer is going to have to be within shouting distance of that, and possibly more, depending on how many binding offers show up.
No deal has been established as yet, and the process is just beginning, so where it ultimately ends up is anyone’s guess right now. No representative from Avid or Goldman Sachs will discuss the matter, Reuters noted. However, not a week ago, Avid brought out word that its CEO and President Jeff Rosica will be on hand for two investor conferences. Joining him will be Ken Gayron, and both will be offering up “fireside chats” at the events that will be available on both live audio and a replay for at least a month thereafter.
Analysts, meanwhile, are generally in favor. Avid Technology is considered a Strong Buy by analyst consensus; with three Buy ratings and one Hold, it’s nearly unanimous. Even with the hefty gains today, Avid Technology stock also comes with a substantial 44.14% upside potential thanks to its average price target of $36.25.
