Friends turned millionaires take tech company shares battle to court

The millionaire co-founder of an Australian video tech company behind some of Hollywood's biggest blockbusters has told the Federal Court a decade of hostility by fellow shareholders has unfairly barred him from selling his lucrative stake in the billion-dollar business.Peter Barber is suing the company he helped establish, Blackmagic Design, and co-founders Grant Petty and Douglas Clarke over claims he has been denied dividends for years, access to information about the business, and the ability to sell his shares.Mr Barber, now based in Singapore, also claims Mr Petty sabotaged an attempted investment in the company that valued Blackmagic at as much as $1.5 billion.Lawyers for Peter Barber told the court he effectively has around $98 million in assets locked up in the company. (LinkedIn: Peter Barber)Blackmagic has grown rapidly since it was founded in Melbourne in 2001 by Mr Barber and Mr Petty, old high school friends who grew up in Shepparton, and Mr Clarke, whom Mr Petty reportedly met at an Apple user group.Last financial year the company generated more than $550 million in revenue and now operates 10 offices worldwide.The tech juggernaut is in high demand by both amateur content creators and US production houses which used its video editing software DaVinchi Resolve for box office smash Avatar, the recent Peaky Blinders film, and hit television series Grey's Anatomy and Yellowstone.The company's hardware was also behind 2019's The Lion King and Avengers: Age of Ultron.Blackmagic Design's video editing software DaVinchi Resolve Studio was used for post-production on Yellowstone. (Paramount)Selling shares would 'destroy the place'Court documents seen by the ABC show Mr Barber first floated the idea of selling his 28 per cent stake in the company a decade ago when his professional relationship with Mr Petty broke down.A statement of claim filed by Mr Barber alleges Mr Petty said he would "fight back" against shares sold to a third party, and promised to be "the most hostile f***ing agent you can possibly imagine"."[I'm] not gonna assist in any way your selling your shares," Mr Petty allegedly told Mr Barber in a 2016 phone call."I'm simply not gonna do that because it's gonna f***ing destroy the place."A few months later the 56-year-old was ousted from Blackmagic's board of directors when the company told corporate watchdog ASIC that Mr Barber had failed to perform his executive duties.He claims that since then he has not received a salary and that dividends have gone unpaid without explanation since 2022 while the company's remaining directors and other key personnel have been compensated millions of dollars each year.Lawyers for Mr Barber told the Federal Court on Thursday their client effectively has around $98 million in assets locked up in the company.Peter Barber is asking the court to order Mr Petty and Mr Clarke to buy out his share, facilitate the sale, or wind up the company. (ABC News: Billy Cooper)According to the documents, venture capital firm Five V Capital had expressed interest in investing in Blackmagic after assessing the company at between $900 million and $1.5 billion.It pulled out after being told Mr Petty would not entertain a sale.Mr Petty, Blackmagic's CEO, and Mr Clarke have been contacted for comment through their lawyers who are due to file a defence to the claims next month.The court heard the pair are considering making an application which could require Mr Barber to set aside a sum of money to pay their legal costs should his case fail.Mr Barber was last year appointed CEO and managing director of Atomos, another Australian video tech outfit, which on Friday responded to media reporting about the proceedings."[The proceedings] have no impact on Atomos, its operations, strategy, financial position or governance, and no impact on Mr Barber's ability to perform his duties," Atomos said in an announcement to the ASX.Mr Barber is asking the court to order Mr Petty and Mr Clarke – who each own 35.8 per cent of Blackmagic — to buy out his share in the company, facilitate the sale to a third party, or wind up the company entirely.The matter will return to court next month.