space and marketing advice for
the exported CDs.
Superstudio was producing 75
percent of Future Vision's CD-
ROMs by early 1995. Scarcely a
year later, the company was ac-
quired by SoftKey and that, Oren
believes, was just great timing.
"Multimedia is a pioneering
field," says Oren. "It's high risk
and expensive, because the tech-
nology changes at a blinding rate
and you must be on top of it. You
have to be prescient but you also
must have the resources with
which to do it."
`The company has lucked out
in terms of its business deals," he
admits. "SoftKey made us part of
this international corporation
which generates real profits.
They've put a tremendous
amount of hope in us as the
largest development factory in
the region."
With revenues of $155 million,
earnings per share of $1.54, and
approximated revenue growth in
1996 of 33 percent, what would
this software producer that is sec-
ond only to Microsoft want with
a homegrown Israeli company?
Oren says that he asked himself
the same question.
SoftKey introduces 25-30 new
titles per quarter to its current
offering of over 250 software ti-
tles. It develops about 50 percent
of its products, licensing the re-
maining 50 percent from third
party vendors. At some point, it
would either acquire the devel-
oper, purchase a competing prod-
uct, or develop in-house a
competing product.
Superstudio believes its af-
fordability and motivation are
what made it at" active to its for-
eign buyer. Oren comments that
Superstudio was channeling a
controlled mass of talent with a
strong work ethic at an afford-
able price.
`There's a real can-do attitude
here," he adds. `The average age
is twentysomething and people
work all night long. It's some-
thing about the industry as a pi-
oneering technology. We're fusing
technology and Zionism, provid-
ing jobs for good people. And we
believe that our future lies as the
largest software 'developer in
Asia, maybe the largest in the
eastern hemisphere."
Acquisitions are one method
of survival; strategic partnerships
are another.
Pixel, a 3D animation, multi-
media and technology company
based in Tel Aviv, has been
hanging its shingles around the
world for the past five years,
forming working partnerships
with a series of media giants,
from RealTime Sports and GT
Interactive to HarperCollins
Publishing and Bertelsmann
Music Group.
These strategic relationships
allow Pixel to conceive, design
and develop its products while

CONSOLIDATION page 64

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