Fxguide and Xconomy|Boston look at the new strategic alliance between GenArts & The Foundry. Here's an excerpt from Fxguide's GenArts Buys Tinder plugins from the Foundry:
"The details of the deal are not published but as the Tinder Plug-ins are profitable they would have to be purchased at a multiple to the discounted cashflow they would generate, so for example if they generate a million dollars a year then the price would be some multiple of that discounted for inflation and allowing for the cost of getting that money from GenArts investors. This can be something approaching 5 to 10 times price to earnings. This means we will be well into this decade before the Tinder Sparks pay for themselves - assuming no new costs and that they continue to sell at present levels. For GenArts to make any money - and for their investors to see a profit, Hays must have a plan. Only three options seem viable:
* broaden the market to areas the Foundry never engaged such as the nearly 1.5 million legal FCP users
* increase the price (and risk selling less),
* find some way of making more of the technology (out guru the Foundry's Gurus)"