$85 Million. That was the price Nikon paid for RED Digital Cinema, according to the Consolidated Financial and Business Data for the Year ended March 31, 2024 (IFRS) document released by Nikon. That’s not a huge price tag for owning the privilege to penetrate the cinema camera market.

RED = 85 Million USD

Nikon has exposed the numbers behind the RED Digital Cinema acquisition. And the main number is the price:   85 Million USD (¥13,167,000,000). Read Nikon’s statement below:

“We acquired US cinema camera manufacturer RED in April 2024. We aim to expand the fast-growing professional digital cinema market. Under this external environment, based on the medium-term management plan (FY2022 – FY2025) policy, the Group sought to secure stable revenues, diversify/expand customers, and deliver high-value-added services in its main businesses, consisting of the Imaging Products Business and the Precision Equipment Business. In the Imaging Products Business, the Group announced a plan to acquire RED.com, LLC, a US-based company with proprietary customers and technologies in the field of professional digital cinema cameras, and to make it a wholly owned subsidiary. In April 2024, the Group accomplished the plan, thereby having made RED.com a wholly-owned subsidiary and made a big stride toward tapping into the professional digital cinema camera market”.

Reasons for Business Combination

As stated by Nikon: “Since its establishment in 2005, RED has been at the forefront of digital cinema cameras, introducing industry-defining products such as the original RED ONE 4K to the cutting-edge VRAPTOR [X] with its proprietary RAW compression technology. RED’s contributions to the film industry have not only earned it an Academy Award but have also made it the camera of choice for numerous Hollywood productions, celebrated by directors and cinematographers worldwide for its commitment to innovation and image quality optimized for the highest levels of filmmaking and video production. This agreement will merge the strengths of both companies. The Company’s expertise in product development, exceptional reliability, and know-how in image processing, as well as optical technology and user interface along with RED’s knowledge in cinema cameras, including unique image compression technology and color science, will enable the development of distinctive products in the professional digital cinema camera market. The Company and RED will merge the strengths of both companies to expand the fast-growing professional digital cinema camera market while leveraging the business foundations and networks of both companies”.

Final thoughts

This price is a steal. Nikon apparently paid peanuts for purchasing 100% of RED Digital Cinema. That may be even lower than counterattack RED in court in order to deal with the (dismissed) lawsuit. Hence, it’s a no-brainer deal for Nikon.