Microsoft Corp took the unusual step of selling off technology yesterday, agreeing to offload its Softimage Inc subsidiary onto Avid Technology Inc in a deal worth $285m. But Microsoft isn’t walking away altogether, and in return takes a 9.1% stake in Avid, which last year posted revenues of $470m. Tewksbury, Massachusetts-based Avid is a high-end digital audio and video tools developer which supplies software and hardware to the film and television industries. Microsoft acquired SoftImage back in 1994 for $130m as one of its earlier acquisitions made with the aim of eating into Silicon Graphics Inc’s market. Two years later, the division launched its first Windows-based animation authoring products, having previously only run on Silicon Graphics hardware. Microsoft gets $79m in cash and $93m in common stock. Last year Intel Corp also invested in Avid, taking a 6.75% share for $14.75m (CI No 3,127).
