Deep dive. Worth the read
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A Seismic Shift: The Ramifications of Nikon's RED Acquisition
When you can't beat 'em, buy 'em.
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Petapixel analyze Nikon acquisition of Red
- Thread starter RichF
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The purchase will probably happen and, I hope it does. I don't shoot Nikon or RED so no dog in the "good or bad" hunt.
During my career, I was a project manager integrating systems through several major corporate acquisitions and divestitures. One thing that sometimes (more frequently than most of us really think about) is these deals will fall through. Sometimes it is because the legal teams cannot agree on some detail. Sometimes, and it happens pretty frequently, is another bidder will come out of the woodwork with a higher bid. Every pre purchase agreement I've seen has numerous "outs" for both companies along the process.
With RED being a private company, I'm not sure how or if the fiduciary thing works. In publicly traded companies, the management and board of directors has a fiduciary responsibility to the shareholders and if a stronger bid comes along, they are obligated to take it. Not sure how that works with a private company like RED. I'm sure the founder and CEO has some obligation to backers and stakeholders in the company.
Again, I hope this goes through, it would most likely be good for the industry. However, don't be surprised if one of the other players steps in to up the bid. Maybe even Canon since they have some kind of existing agreement with RED. However, to the best of my knowledge, RED cameras are not auto focus and maybe not any auto exposure mode therefore the canon mount lenses wouldn't communicate with the camera??? Don't know how that works.
Just thinking out loud here.
Jeff
During my career, I was a project manager integrating systems through several major corporate acquisitions and divestitures. One thing that sometimes (more frequently than most of us really think about) is these deals will fall through. Sometimes it is because the legal teams cannot agree on some detail. Sometimes, and it happens pretty frequently, is another bidder will come out of the woodwork with a higher bid. Every pre purchase agreement I've seen has numerous "outs" for both companies along the process.
With RED being a private company, I'm not sure how or if the fiduciary thing works. In publicly traded companies, the management and board of directors has a fiduciary responsibility to the shareholders and if a stronger bid comes along, they are obligated to take it. Not sure how that works with a private company like RED. I'm sure the founder and CEO has some obligation to backers and stakeholders in the company.
Again, I hope this goes through, it would most likely be good for the industry. However, don't be surprised if one of the other players steps in to up the bid. Maybe even Canon since they have some kind of existing agreement with RED. However, to the best of my knowledge, RED cameras are not auto focus and maybe not any auto exposure mode therefore the canon mount lenses wouldn't communicate with the camera??? Don't know how that works.
Just thinking out loud here.
Jeff
Reading the announcemt, and having done deals my entire professional life, this one has been consummated for all intensive purposes (Membership Interest Purchase and Sale Agreement signed), perhaps waiting on European Commission to clear it.
I'm quite sure you are right. Just cautioning folks to not count chickens before the eggs have hatched.
fcotterill
Well-known member
Looking back at a couple of Nikon's recent acquisitions, the MRMC acquisition in 2017 was preceded by collaboration (eg Wimbledon 2013) and Mark Robotics continues to operate as its own company, albeit entirely Nikon owned. They are uniquely qualified to work closely with RED in integrating robotic cinematography supports etc operating remotely
www.nikonusa.com
Fyi the SLM acquisition proceeded through a series of stages
Shop All Nikon Mrmc | Nikon USA
Mark Roberts Motion Control (MRMC) is a Nikon Group Company focused on cutting edge camera robotics and automation for cinematography, broadcast, television, sports, live events and photography.
www.nikonusa.com
Fyi the SLM acquisition proceeded through a series of stages
Deal could leave both companies independent but sharing technology - great for both
FTC will want to take a look, too. But I doubt the EC and FTC will raise an objection.
Not a chance. Red is done with.
FTC objects to all mergers
The most common test is "market power," typically defined as market share above 50%. Since RED doesn't sell still cameras and Nikon doesn't sell cine cameras, their respective market share in either field doesn't rise. And if they use "camera" as the field, Nikon sits at about 3% and red is probably below 1%, so again no issue. The EC is far more politicized and strict, but the press release wouldn't have been released without some assurance that the deal is approved.
No they don’t. Over the years I’ve been involved in three to which they had no objection.
I have stretching the truth a bit but under Biden they are a lot carefully than under trump. No judgement here, just an observation
For example Kroger Albertsons merger is under scrutiny
Generally speaking, if a merger or acquisition is going to establish an imbalance in market share, it’s going to get close scrutiny and will probably be blocked. Most mergers and acquisitions don’t do that and usually allowed without detailed scrutiny. Given that Nikon’s acquisition of RED will have only a marginal impact on the market for photographic technology and equipment, I think it will be approved by EU and US regulators.