Nikon has announced the acquisition of RED, a high-end movie camera company. The value of the deal was not disclosed. The statement said that RED will become a wholly owned subsidiary of Nikon. RED currently employs about 220 people. No plans for staff reductions have been made public at this time.
RED was founded in 2005 and has established a reputation for producing high-quality movie cameras, with cameras used in popular films such as «Squid Game», «Sharpshooters», and «Captain Marvel». Now Nikon plans to enter this market with its new acquisition. In recent years, Nikon has withdrawn from less profitable areas of the camera market, including the development of new DSLRs.
This move could benefit both parties, as RED President Jarred Lang shared on Facebook:
«This strategic partnership combines Nikon’s extensive history and experience in product development, image processing know-how, optical technology and user interface with revolutionary digital cinema cameras based on the acclaimed RED» technology.
Earlier in 2018, RED tried to expand its business and enter the smartphone market. However, after short attempts, the company stopped working in this direction.
Interestingly, shortly before the partnership, patent disputes arose between the companies. In 2022, RED filed a lawsuit against Nikon, claiming that the latter had knowingly used RED’s patented data compression technology in its Z9 camera. Nikon, in turn, argued that the use of RED’s patents was legitimate. The companies subsequently agreed to a settlement.
Source: Engadget