Reply To: Native Instruments Insolvency and Updates

[LinkedMusicians]

On mira said

thank you so much dear Peter for recent info about this sad situation, nice to read that PA is out of problems… and will work and it isnt part of this …

 

have a nice evening

That doesn’t mean that there won’t be a bankruptcy filing for it in another country. I would expect that there will be a bankrupcty filling for it. Native Instruments has a massive amount of debt compared to its annual revenue. The insolvency administrator is going to need to look at every option. According to CDM, NI’s 2023 filings, they had £250 million in debt with revenue of around $25 million (EBITDA – Earnings before interest, taxes, depreciation, and amortization). They’re going to need a way to pay off that debt and that will mean that every part of the company that has value could be up for sale. But also understand that the administrator could find investors who want to continue NI. There are many potential scenarios, but with so much debt compared to their liquid assets, it seems virtually certain that the administrator will be selling off the most valuable assets in order to raise as much cash as possible. We don’t know a great deal at the moment, but from what we do know, Native Instruments was very poorly managed and got in far over its head on acquisitions. It has long been known in the industry that the company was in trouble, but the facts that have come to light show very poor judgment by management. I really can’t stress that enough.

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