In a strategic move to bolster its presence in the professional digital cinema camera market, Nikon Corporation NINOY has announced plans to acquire RED.com, LLC, a renowned U.S. cinema camera manufacturer.
What Happened: Nikon disclosed that it has reached an agreement to purchase all outstanding membership interests of RED.com, thereby making it a wholly-owned subsidiary of Nikon.
The agreement was negotiated with RED’s founder, Mr. James Jannard, and its current President, Mr. Jarred Land, and is subject to certain closing conditions, the company said.
Founded in 2005, RED has launched innovative products like the original RED ONE 4K and the advanced V-RAPTOR [X]. Its contributions earned it an Academy Award and a favorite among numerous Hollywood productions.
Nikon aims to synergize its expertise in product development, image processing, optical technology, and user interface with RED's proficiency in cinema cameras, unique image compression technology, and color science to create unique products in the professional digital cinema camera market.
With this acquisition, Nikon intends to broaden its horizons in the fast-growing professional digital cinema camera market, hinting at an exciting future of product development that will continue to redefine the limits of film and video production.
Why It Matters: This acquisition comes on the heels of a legal dispute between Nikon and RED.com. RED.com had previously sued Nikon over the implementation of compressed raw recording capabilities in Nikon’s Z9 flagship camera. Nikon refuted all of RED's claims and retaliated.
The lawsuit was set for a jury trial in January 2024. However, the California Central District Court dismissed the case, allowing Nikon’s Z9 to retain its compressed raw codecs. This past legal tussle adds a layer of complexity to the acquisition, highlighting the competitive dynamics between the two companies.
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