A co-founder of an Australian video technology giant, instrumental in the production of Hollywood blockbusters and popular television series, has launched a Federal Court challenge alleging he has been unjustly prevented from selling his substantial stake in the multi-billion dollar enterprise. Peter Barber, a key figure in the establishment of Blackmagic Design, claims a decade of animosity from fellow shareholders has locked away his valuable assets and denied him access to crucial company information and dividends.

Mr. Barber, now residing in Singapore, has initiated legal proceedings against Blackmagic Design and its co-founders, Grant Petty and Douglas Clarke. His lawsuit details allegations of withheld dividends dating back years, a systematic lack of transparency regarding business operations, and a concerted effort to obstruct the sale of his significant shareholding.

The Rise of a Tech Juggernaut

Blackmagic Design, which was co-founded in Melbourne in 2001 by Mr. Barber and Mr. Petty – who were childhood friends from Shepparton – alongside Mr. Clarke, has ascended rapidly to become a global leader in video technology. The company’s innovative software, notably DaVinci Resolve, has become a staple for both amateur content creators and major US production houses. Its tools were integral to the post-production of cinematic triumphs such as James Cameron's Avatar and the recent Peaky Blinders film, as well as hit television series including Grey's Anatomy and Yellowstone. Beyond software, Blackmagic Design’s hardware played a pivotal role in visual effects for blockbusters like 2019’s The Lion King and Avengers: Age of Ultron.

The company's impressive growth is underscored by its financial performance, having generated over $550 million in revenue during the last financial year. Blackmagic Design now boasts a global footprint with ten offices worldwide, cementing its status as a formidable player in the international technology landscape.

A Decade of Discord and Locked Assets

Court filings indicate that the professional relationship between Mr. Barber and Mr. Petty began to deteriorate approximately a decade ago, prompting Mr. Barber to explore selling his 28 per cent stake in the company. His legal team told the Federal Court that this shareholding effectively represents around $98 million in assets that are currently inaccessible to their client.

The lawsuit details a particularly contentious period, alleging that Mr. Petty vehemently opposed any attempt by Mr. Barber to divest his shares. In one alleged exchange, Mr. Petty reportedly stated he would “fight back” against any third-party sale and promised to be “the most hostile f***ing agent you can possibly imagine,” further asserting he would not assist in the sale as “it’s gonna f***ing destroy the place.”

Months after these alleged confrontations, Mr. Barber was removed from Blackmagic Design’s board of directors, with the company informing the corporate regulator that he had failed to perform his executive duties. Since his removal, Mr. Barber claims he has not received a salary, and dividends have ceased without explanation since 2022. This contrasts sharply with other directors and key personnel, who are reported to have received millions of dollars annually.

Sabotaged Investment and Demands for Resolution

Among the serious allegations is a claim that Mr. Petty actively sabotaged a significant investment opportunity. Venture capital firm Five V Capital had expressed interest in Blackmagic Design, assessing its value at a substantial $900 million to $1.5 billion. However, the firm reportedly withdrew its interest after being informed that Mr. Petty would not countenance a sale.

Mr. Barber is now seeking court intervention to resolve the impasse. He is asking the Federal Court to compel Mr. Petty and Mr. Clarke, who each hold a 35.8 per cent stake, to either purchase his shares, facilitate their sale to a third party, or, as a final resort, wind up the entire company. Lawyers representing Mr. Petty, the CEO of Blackmagic Design, and Mr. Clarke, have been contacted for comment and are expected to file their defence next month. The court has also heard that the defendants are considering an application that could require Mr. Barber to allocate funds to cover their legal costs should his case prove unsuccessful.

Meanwhile, Mr. Barber was appointed CEO and managing director of Atomos, another Australian video technology firm, last year. Atomos recently issued a statement to the ASX confirming that the ongoing legal proceedings have no impact on its operations, strategy, financial position, governance, or Mr. Barber’s ability to perform his duties. The legal matter is scheduled to return to court next month for further hearings.