Avid Technology Inc. (AVID): Derek C. Schrier’s Indaba Capital Management Starts Stake With 2.27 Million Shares

Derek C. Schrier’s Indaba Capital Management disclosed on September 12 that it had started a position, with 2.27 million shares of Common Stock, in Avid Technology, Inc. (OTCMKTS:AVID). This stake is worth more than $22 million at current stock prices, accounts for more than 5.8% of the company’s outstanding stock, and makes it the largest hedge fund shareholder of record –amongst those that we keep track of- at the company.

Other major hedge funds betting on Avid Technology, Inc. (OTCMKTS:AVID) are Jeffrey Bronchick’s Cove Street Capital, which last disclosed (in late-July) holding 1.95 million shares of the company’s Common Stock, and Kelly Cardwell’s Central Square Management, which owns 1.7 million shares.

Avid Technology, Inc. (NASDAQ:AVID)

Avid Technology, Inc. (OTCMKTS:AVID) is a $378 million market cap provider of technology products, solutions and services that enable the creation and monetization of audio and video content. The company develops, markets, sells and support software and hardware for digital media content production. Last Friday, the company filed some financial documents at the SEC, seeking to be relisted on the NASDAQ exchange.

In other news, Schubert Jonckheer & Kolbe is actively investigating alleged misconduct by the company’s top executives, including directors’ and officers’ breaches of their fiduciary duties to the company.

On a brighter note, Avid Technology, Inc. (OTCMKTS:AVID) presented, last week, the Avid VENUE | S3L-X compact live sound system , and new and upcoming innovations for the Avid MediaCentral Platform. In relation to these launches, the company’s PR department said:

“When used together, Avid VENUE | S3L-X and Pro Tools(R) | Software—both part of the Avid Artist Suite of solutions and powered by the Avid MediaCentral Platform—deliver the most streamlined, economical, and tightly integrated approach to mixing and recording live productions (…) Through Avid Everywhere(TM), Avid delivers the industry’s most open, innovative, and comprehensive media platform, connecting content creation with collaboration, asset protection, distribution, and consumption for the most listened to, most watched, and most loved media in the world—from the most prestigious and award-winning feature films, music recordings, and television shows, to live concerts and news broadcasts. Industry leading solutions include Pro Tools(R), Media Composer(R), ISIS(R), Interplay(R), and Sibelius(R).”

Derek C. Schrier’s Indaba Capital Management is an event-driven and opportunistic value investing, San Francisco-based hedge fund founded in 2010. It holds an equity portfolio worth more than $250 million, according to its last 13F filing for the second quarter of 2014. Its largest bets are placed on Suncoke Energy Inc (NYSE:SXC) and Express, Inc. (NYSE:EXPR), of which it owns 1.98 million shares (worth more than $42 million) and 1.72 million shares (worth more than $29 million), respectively.

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