Media 100 has been bought out by encoders-and-decoders specialist Optibase.

The news follows Media 100's recent announcement that is was "actively seeking additional capital or a sale of all or part of its business".

Media 100 president and chief executive officer John Molinari said: "Optibase gives Media 100 the financial wherewithal to continue engineering and marketing 844/X and Media 100 HD, and compete aggressively in the market.

"The deal is timed to support us just as we begin first shipments of our new 844/X Version 3 release and prepare to deliver our first implementation of 844/X technology on the Apple Power Mac G5 platform--Media 100 HD."

Optibase CEO Tom Wyler said: "The advanced products that Media 100 has developed represent a growth opportunity for Optibase."

This transaction is to be effected as part of a pre-packaged bankruptcy. The term sheet specifies that Optibase intends to provide up to $1 million in a debtor-in-possession loan, and buy the assets of Media 100 for $2.5 million.

Media 100 says it most of the proceeds will be used to cover operating expenses and pay creditors, and that it is "unlikely" that stockholders will receive any payment.

The acquisition is subject to negotiation and approval by the US bankruptcy court. If the transaction is not completed, Media 100 may be required to cease operations.