The two companies will become a new entity.
This has been described as a 'merge', however it does appear that Arius will purchase masterfile.
It's not a done deal as yet:
"Arius3D, which has been trading on the venture exchange under the ticker LZR since last February, expects the deal to close by Halloween 2011. Should the deal fail to close or gain necessary approvals by October 31, Arius has agreed to pay Masterfile $750,000 in termination fees."http://www.cbc.ca/fp/story/2011/08/22/5290109.htmlI mentioned a potential lawsuit between MF and Arius if this doesn't work out.
Anyone who thinks that it couldn't happen if the deal goes sour is out of touch with reality.
All rights will transferred from MF to Arius3D.
"The Company intends to raise the funds necessary to satisfy the cash portion of the purchase price through an agreement with an arm's length entity ("Financing Partner"). The Company is currently negotiating an agreement with Financing Partner pursuant to which (i) Financing Partner will acquire Masterfile's contractual rights to the pictures and images currently (and to be) licensed by Masterfile (the "Masterfile Library") for $20 million in cash, (ii) Masterfile will provide distribution services to Financing Partner and (iii) Masterfile and/or Arius3D will receive a participation interest in the net profits (after the payment of applicable royalties to the respective artists/licensors) to be obtained from Financing Partner in connection with the Masterfile Library."http://www.marketwatch.com/story/arius3d-to-acquire-masterfile-2011-08-19But the problem remains that the photographers/artists still hold the copyrights of individual images and not MF in many cases.
So, they're really back to square one like Getty and Righthaven. Attempting to transfer the right to litigate without transferring the actual copyright is moot.
It's standard practice in the business world these days to paint aquisitions as a "merger of equals".
It's also standard practice for companies to publicly state that nobody will be fired. But, neither of these are true in most cases.
These statements are simply public relations intended to keep things stable as much as possible.
Sounds like Pigeon's probably ready to retire.
He's likely staying on for now; that keeps the illusion of 'stability' going.
He'll probably become a consultant to the company, and then retire.
"I'm 60 years old. I can't do this forever," says Masterfile CEO and largest shareholder Steve Pigeon of his decision to sell the agency."http://www.pdnonline.com/pdn/news/3-D-Imaging-Company--3436.shtmlPigeon also sent a shot across the bow of the competition. But's kind of like trying to say that Jeffery Dahmer is better than Ted Bundy:
"Masterfile's contributing photographers are also "heaving a sigh of relief we didn't sell out to Corbis or Getty," Pigeon says. Those agencies have imposed less favorable terms on contributors to agencies they have purchased in the past."http://www.pdnonline.com/pdn/news/3-D-Imaging-Company--3436.shtmlThe future of the extortion letter scheme is uncertain in my opinion.
Many uninformed people paid through the nose for a while, but people are getting more educated these days.
The only thing that really makes people pay is court or the prospect of court.
Despite what some people who earn a living from these scams will tell you on this forum, the court challenges haven't been all that successful for the copyright trolls.
Anyone elese notice that 'photographer' aka 'helpi' is "off" on Tuesdays?
Also, inb4 "libel". Come at me, bro.
S.G.
Topic: Two Canadian tech firms combine ( Masterfile ) (Read 14181 times)