ArcSoft, Inc. Declines to Make Offer to Buy Live Picture's Assets.FREMONT, Calif.--(BUSINESS WIRE)--June 28, 1999-- ArcSoft, the leader in digital imaging software and online photo services, today announced it was declining to make a bid to acquire through the bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. the assets of Live Picture Inc., a software company specializing in digital and Internet imaging solutions. ArcSoft, a privately held company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. , had announced its intent to purchase the assets of Live Picture last month. "We reviewed the Live Picture assets and determined that an acquisition would not be of value to us," said Joseph Bollentini, executive vice president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of ArcSoft. "Their technology would have been a small piece in the vast array of resources we plan on offering via the Internet, and the investment in Live Picture would far exceed the benefit. ArcSoft is a company intent on providing to consumers all of the digital imaging tools they need, be it an online service or a software solution." "ArcSoft's attempt to submit a bid for Live Picture's zoom technology was pre-empted by a secret deal previously negotiated between Live Picture and MGI MGI Mouse Genome Informatics MGI Modular Gateway Interface MGI McKinsey Global Institute MGI Military Geographic Information MGI Marine Geological Institute MGI Policy on the Management of Government Information (Canada) ," said Jeff Stamp, attorney for ArcSoft. "According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. court transcripts, the deal for Live Picture's assets was negotiated for several months prior to filing the bankruptcy. The sale was then transferred to the Bankruptcy Court for approval in order to sell the assets free and clear of any liens through what is supposed to be a competitive bidding Competitive bidding A securities offering process in which securities firms submit competing bids to the issuer for the securities the issuer wishes to sell. competitive bidding 1. process." Live Picture's withdrawal from the market leaves ArcSoft as the front-runner in online digital imaging innovation. Bollentini indicated that the company was exploring a variety of partnerships and said that ArcSoft would be rolling out a full complement of Internet-based products and services later this summer. ArcSoft provides comprehensive, easy-to-use, individual products that enable a variety of imaging capabilities. The ArcSoft line includes ArcSoft Photo Montage(TM), ArcSoft PhotoPrinter(TM), ArcSoft PhotoBase(TM), ArcSoft PhotoFantasy(TM), PhotoStudio(R), VideoImpressions, MegaStitch, and more. "Court records show that MGI is financing its proposed purchase by selling a substantial block of its stock to a major shareholder of Live Picture, an investment company called Perseus," said Stamp. "The sweetheart deal Sweetheart Deal A merger or company sale where one company involved in the deal gives the other very attractive terms and conditions. Notes: In other words, a sweetheart deal is a transaction that a firm simply cannot pass-up. This is usually considered to be unethical. allows Perseus to maintain control of the assets through MGI and to shed the liabilities of Live Picture at the same time. The only danger to the transaction is if any competitive bidders like ArcSoft are allowed to submit a bid." After reviewing the proposed sale procedures, Judge Montali stated, "This deal is by and for Perseus." In an attempt to keep the bidding process fair, Judge Montali subsequently struck down several proposed barriers imposed on other bidders by Live Picture and MGI. About ArcSoft Founded in 1994 and based in Fremont, Calif., ArcSoft develops and markets digital imaging and video software products designed for the creation of business graphics, consumer photo editing See photo editor. , multimedia, and Internet publishing. ArcSoft believes in competitively priced, high-quality software products for the retail market. Special edition versions are also included as dual platform (PC/Mac) bundles with popular PC and electronics products like digital cameras, color printers and scanners. ArcSoft's OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customers are leading digital camera, printer, scanner and computer manufacturers. (c) 1999. ArcSoft, Inc. All rights reserved. PhotoStudio is a registered trademark of ArcSoft, Inc. ArcSoft, the ArcSoft Logo, ArcSoft PhotoMontage pho·to·mon·tage n. 1. The technique of making a picture by assembling pieces of photographs, often in combination with other types of graphic material. 2. The composite picture produced by this technique. , ArcSoft Imaging Suite, ArcSoft PhotoFantasy, ArcSoft PhotoBase and ArcSoft PhotoPrinter are all trademarks of ArcSoft, Inc. All other product names are trademarked or registered by their respective companies. |
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