AudioMedia - July 2008 - (Page 12)

w h a t ’s u p UK whatsupuk@audiomedia.com Buying Big Business KEVIN HILTON jumps on the rumour mill when a lot of ‘for sale’ signs start popping up around some of the industry’s big names. he news may give hard facts that are irrefutable, but there is always room for speculation as to how the events concerned happened and what might happen next. This was very much the case with the sale of the BBC’s outside broadcast, studios, and post-production departments. This was instigated after a Commercial Review concluded that the Corporation should only own businesses that exported or exploited its brand or programmes. The ‘for sale’ notice went up last year and the BBC appeared to be hoping that the BBC Resources as a whole would be sold to a single buyer, but potential bidders were interested in only single divisions. In April, Satellite Information Services (SIS) was named as the new owner of BBC OBs. Around the same time the BBC made a not so loud announcement that BBC Studios would remain within the BBC as the rump of BBC Resources. So, one sold, one retained, and one to go. Prime Focus London, part of the Indian Prime Focus group, was among those showing interest in BBC Post Production but, as with the studios, there were difficulties over staff conditions, among other issues. Early June, with hardly anyone noticing, the broadcaster slipped out an announcement that, “… the BBC Sale Team has now confirmed that the BBC is no longer actively in discussion with a buyer for its Post Production business.” The BBC is to “complete a review into its longer term post production supply requirements.” Post Production will stay within BBC Resources, which is still a wholly-owned subsidiary of the Corporation. The BBC and BBC Resources are to look into what the broadcaster needs from its creative-technical services and see how this affects any future plans. Although BBC Resources has been operating on a free market basis since the 1990s and producers have been able to use outside facilities, there is the thought that having easy access to ‘in-house’ studio T and post services, run by people who understand the Corporation’s ethos, is a major advantage. That applies to OB trucks as well but by their nature they are an external resource; besides, SIS has promised to continue working with the BBC, so specialist knowledge and understanding will not be lost. Studios and post are different, particularly on big projects like Euro 2008 when the BBC needs a dedicated facility. of Calrec by D&M is as successful as both parties had hoped for, and we do not see any reason for this to change.” Cadac Conjec ture Any conjecture over how Calrec and A&H would fare under a new owner was more or less abandoned when the news came through that another well respected and long-standing British console brand, Cadac, had ceased trading, even though it was still solvent. The immediate conclusion was that someone would scoop up the niche manufacturer, maybe a competitor or a manufacturing conglomerate, but most likely a venture capital firm. Which shows how speculation can go awry. By the end of June, Managing Director Bob Thomas was securing new financing with the assistance of Cadac’s bank, and staff had returned to work. Thomas explained that four abandoned orders had brought the company to the point where the shareholders decided to cease trading, rather than trade into insolvency. “We ran out of cash over the summer,” he said, “but now the situation is looking most promising.” Thomas acknowledges that a specialist manufacturer dependant on almost a single market will be vulnerable and so was frustrated that the company nearly succumbed when plans for greater diversification were in place. Cadac’s analogue products are still a critical part of its output, but the company is seeing the new S Series digital desk opening up the installation market, with the first going into the Royal Exchange Theatre in Manchester. Thomas is also using experience from his days at Tascam to move into rack-mounted EQ and compression equipment. So we may now know more about all these stories but there’s still plenty to keep Rumour Control going for a while. ∫ Corporate ownership is a tricky business. If a company is bought there are fears that the new owner will make all sorts of changes. The ideal is to be owned by a concern that has the money but allows its subsidiaries to manage their own business, with the only demand being that money is made. The prospect of that enlightened owner being bought out must be worrying. D&M Holdings, which owns Calrec Audio and Allen & Heath, its most recent acquisition, as well as a number of consumer electronics manufacturers, has entered into agreement whereby Bidco, a group of investment funds advised by equity firm Bain Capital Partners, would buy all its shares. This would put D&M and its subsidiaries into single, private ownership. D&M’s board has agreed that this would be the best move for the company and allow increased investment to move its businesses on in ‘fast-paced markets’. Bain Capital has invested in a variety of big name brands, including Burger King, Toys ‘R’ Us and Warner Music. Some equity firms come in and asset strip, but one D&M company is confident that the situation will not change dramatically. “The Calrec management does not expect the sale of shares in D&M Holdings to Bain Capital to affect the considerable level of support given to us by D&M, which allows us to pursue our strategies and customer relationships in the way we always have,” said John Gluck, Calrec’s Sales and Marketing Director. “The ownership Corporate Concerns Introducing the new PortaGig. Glyph’s second generation PortaGig 800 can handle over 55 tracks of 24bit/48k audio, with edits, running on FireWire bus power. Weighing less than 10 ounces, all this power is backed by Glyph’s Advance Replacement and Data Recovery Policies. Up to 250GB capacity (2) FireWire 800, (1) USB 2.0 port 7,200 or 5,400 RPM SATA II drives Universal AC power supply included Store in a cool place.. 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Table of Contents Feed for the Digital Edition of AudioMedia - July 2008

AudioMedia - July 2008 Contents Recording Post Broadcast What's Up UK Geofocus: France For the Record Special Report: Develop Preview SE Electronics 4400 Sennheiser MKH800 Twin Tubetech Club Final Cut: Wanted Smart AV Tango Doctor Who Made in America DSP Roundup Product Sampler: Summer Hits Edirol R44 Video Guide AMSR Fame - Le Musical Waves MaxxBCL Yamaha AD8HR Special Supplement

AudioMedia - July 2008

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