This is my opinion only guys.
I can happily do my projects in F2008 and you can also.  Yes, there are some 
additions that would be nice but the fact is we are dealing with a system, 
music notation, that was created many years ago and hasn't changed 
significantly.  Finale, Sibelius and now Steinberg give most of us the tools we 
need.  And the fact is that notation is becoming less important with younger 
pop musicians.  So the market is shrinking.  
As already stated companies have to make the stock holder happy.  I remember 
Dick Grove once said to 
"your success as a composer or arranger/producer is not being made by someone 
that understands creativity or even like music, it is being made by a bean 
counter."  
I sincerely feel we are at the start gloomy period for Finale.  I also hope I'm 
wrong.
Musically,
Terry




On Wednesday, November 20, 2013 5:46 PM, Craig Parmerlee <[email protected]> 
wrote:
  
On 11/20/2013 4:36 PM, David H. Bailey wrote:
> My first thought when reading about the reorganization at MakeMusic is 
> that the new
 owners, being venture capitalists and not software 
> developers, are looking to reshape the Finale team so they can make it 
> more marketable to another company such as Cakewalk. Steinberg is 
> developing their own notation program, Avid has Sibelius to go along 
> with ProTools, Presonus bought up Notion, so the only independent 
> notation program is Finale. Thinking like a venture capitalist, that's 
> what I would do -- invest in modernizing the code so that it could 
> more easily be incorporated into another product line, get a new 
> upgrade out the door to recoup some of the investment as well as prove 
> to potential corporate buyers that there's a thriving marketplace 
> still, then unload just Finale or possibly the whole company or 
> spinoff SmartMusic on its own and sell that also to some educational 
> software company.


It is an interesting thought.  This is definitely the normal "KKR" mode 
of operation used over and over by turnaround specialists.  The 
situation may be slightly different in this instance because the present 
ownership has a longer term involvement with Coda/MakeMusic.  They 
didn't race in a buy the company for a quick flip.  Instead they bought 
it to protect a sizable investment they already had made.

Nonetheless, I think you make a solid point that ownership's goal is 
surely to prepare the company to be attractive as an exit plan.  I don't 
know that the reorganization foreshadows breaking the company
 into 
component pieces to sell off individually.  But it isn't bad to keep 
that option open.

The universe of buyers is not particularly large, as there has already 
been a lot of consolidation in the music technology business.  Avid 
bought Sibelius, which made a little sense.  But then they proceeded to 
gut that development team.  Avid hasn't made a profit for over 5 years.  
because of that experience, others are probably not eager to jump into 
the notation space.

Steinberg is backed by Yamaha, and having an advanced notation product 
makes perfect sense for Yamaha, given their marketing reach throughout 
the entire music business.  But they have already placed their bets with 
Daniel
 Spreadbury.

I believe that Cakewalk is the most likely target.  They were acquired 
by Roland a few years back, and that almost killed Cakewalk/Sonar.  
Things just moved too slowly under Roland.  Roland is selling Cakewalk 
to Gibson, which is one of the real Goliaths in the music business.  
Most of Gibson's properties are on the performing side, but the 
acquisition of Cakewalk indicates an interest in growing into the 
software side of the music technology business.  They have the muscle to 
support this long-term.

Beyond that, I just don't see very many good fits.  Maybe one of the big 
music publishing houses would be interested in owning the notation 
product that most of the new scores are written with. 
 But that's a long 
shot, I'd think.

I guess there is the Steinway/Conn/Selmer/UMI thing.  But they really 
are into physical instruments and not anything electronic.

There are second tier companies like Vienna Instruments, which is a 
competitor of Garritan, and perceived as more of an upscale product.  
They might have an interest, but that seems like a big bite for them to 
swallow.

Considering all of the above, if Gibson isn't interested, then I don't 
see a good acquisition play.  That leaves the ownership with the need to 
make the company attractive enough to take it public again.



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