Blackmagic Design Co-founder Sues Over Denied Share Sale and Dividends

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 alleges Mr Petty sabotaged an attempted investment in the company that valued Blackmagic at as much as $1.5 billion.

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, DaVinci 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.

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 simply not gonna do that because it's gonna f***ing destroy the place."

A few months later, Mr Barber was ousted from Blackmagic's board of directors when the company told corporate watchdog ASIC the 56-year-old had failed to perform his executive duties.

He says 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.

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 were considering making an application that 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.

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.