Shocking News This Morning from MakeMusic
Jim Frankel posted a tweet this morning:
His tweet leads to this news item (from MakeMusic) where LaunchEquity Partners, LLC has offered to buy out MakeMusic and liquidate it. MakeMusic hasn't accepted the offer but is considering it. See the following excerpt:
Consistent with its fiduciary duties, MakeMusic’s Board of Directors has appointed a Special Committee of independent, disinterested directors to review and consider the proposal, in consultation with financial and legal advisors, and determine the course of action that it believes is in the best interests of MakeMusic and its shareholders. The Board has authorized the Special Committee to consider the full range of available strategic alternatives including, but not limited to, continuing as an independent, public company with MakeMusic’s current growth plans.
Second quarter results are coming in August, and I personally don't expect them to look good–it's a down quarter for MakeMusic subscriptions and no major release of Finale until 2013 (a better answer for the future, but it will look bad this year).
It's scary to see that LaunchEquity Partners, LLC owns 27% of MakeMusic's stock…and that they would willingly liquidate the company.
LaunchEquity’s proposal contemplates that MakeMusic would adopt a plan of liquidation, which would include a distribution of MakeMusic’s then available cash to existing shareholders.
In the world of music education, there is no other option for technological music assessment (SmartMusic) and Avid/Sibelius are hurting, too. We'll have to see where this development goes (Note: I still haven't heard back from Chromatik regarding the beta program).
I hope the special committee will consider what is best for Music Education. Granted, that may not be what is best for business, and you cannot run a company based on profits (i.e. shareholders) with that mentality.
(Thanks to Jim Frankel for keeping an eye on MakeMusic notices).