A co-founder of Blackmagic Design is taking the company to court. Peter Barber says he’s owed years of dividends and has been blocked from selling his shares.
The background
Blackmagic Design started in Melbourne, Australia, in 2001. Barber founded it alongside current CEO Grant Petty and Douglas Clarke. Barber and Petty went back to high school together, while Petty reportedly met Clarke through an Apple user group.
The company has grown well past those origins. Blackmagic now runs 10 offices worldwide and reported revenue above $550 million last year.
What’s the case about?
Court documents say Barber wanted to sell his 28% stake a decade ago, after his working relationship with Petty broke down. Barber alleges Petty warned he would “fight back” if the shares went to a third party. According to the filing, Petty also said he wouldn’t help find a buyer and that a sale would “destroy the place.”
Removed
Blackmagic Design removed Barber as a director a few months later. In a report to the Australian Securities and Investments Commission, the regulator overseeing companies and financial markets in Australia, the company said Barber had failed to perform his executive duties. Barber says he has received no salary and no dividends since. Other directors, he claims, have been paid millions over the same stretch.
What is Barber seeking?
His lawyers put the value of his tied-up stake at roughly $98 million. The filing also alleges that a venture capital firm approached Blackmagic Design with an offer somewhere between $900 million and $1.5 billion, then walked away when Petty refused to sell.
Barber wants Petty and Clarke to buy him out. Failing that, he’s asking the court to order the company sold to a third party or wound up entirely.
Where does Atomos fit into this case?
Barber currently serves as CEO and managing director of Atomos. The lawsuit is personal, filed against the Blackmagic Design directors, and Atomos is not a party to it. In a statement to the Australian stock exchange, Atomos said the case has no impact on its operations, strategy, financial position or governance, and no bearing on Barber’s ability to do his job.
What next?
The case returns to court next month, when Petty and Clarke are due to file their defense.
What we think
Blackmagic built its reputation on undercutting the industry. Cheap cinema cameras put a usable image in the hands of indie filmmakers who couldn’t touch the alternatives. Then the company bought DaVinci Resolve, a $20,000 grading suite, and gave the core version away.
That pricing philosophy doesn’t survive a private equity buyer. Anyone who has watched a beloved tool get acquired knows the pattern: the free tier shrinks, the subscription appears, the hardware margins go up. If the court orders a sale, the thing that made Blackmagic worth caring about is the first thing on the chopping block.
None of which speaks to whether Barber has a case. A shareholder locked out of dividends for ten years while codirectors collect millions has a legitimate grievance, and a private company with no exit path is a real trap for anyone holding a minority stake. The sympathetic outcome for filmmakers and the fair outcome for Barber may not be the same thing.
