Media 100 has executed a non-binding term sheet providing for the sale of most of its assets to Optibase for $2.5m (£1.34m). The amount includes any 'debtor-in-possession' funding that might be needed.
The news followed a statement from Media 100 last week revealing that it was looking for additional funding or a buyer for all or part of its business. A deal with Optibase would save Media 100 from closure.
The decision to sell its assets is the result of failure to generate the revenues needed to keep Media 100's operations going.
The company has seen a drop in sales for the past three fiscal years and increasing net losses over the same period with a loss of $13.5m (£7.3m) in 2002 alone. The company last showed a profit in 1999.