13D Filing: Cove Street Capital and Avid Technology Inc. (AVID)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 2)*

AVID TECHNOLOGY, INC.

(Name of Issuer)

Common Stock, Par Value $.01 Per Share

(Title of Class of Securities)

05367P100

(CUSIP Number)

MerihanTynan
Cove Street Capital LLC
2101 East El Segundo Boulevard, Suite 302
El Segundo, CA 90245
(424) 221-5897

(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)

January 23, 2018

(Date of Event which Requires Filing of this Statement)

If the filing person has previously filed a statement on
Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule
because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. X

Note: Schedules filed in paper format shall include
a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other
parties to whom copies are to be sent.

The remainder of this cover page shall be filled out for a reporting
person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing
information which would alter disclosures provided in a prior cover page.

*This Amendment No 2. (“Amendment No. 2”) dated January 23, 2018
amends and supplements Amendment No. 1 dated January 19, 2016.

The information required on the remainder of this cover page
shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934
(“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all
other provisions of the Act (however, see the Notes).

Item 1.  Security and Issuer.

*This Amendment No. 2 relates to shares of common stock, $.01 par value per share (the “Common Stock”) of Avid Technology,
Inc., a Delaware corporation (the “Issuer”). The principal executive office and mailing address of the Issuer is 75 Network
Drive, Burlington, MA 01803.

Item 2.  Identity and Background.

a) This statement on
Schedule 13D is being filed pursuant to Rule 13d-1 under the Securities Exchange Act of 1934, as amended, by Cove Street Capital,
LLC (CSC).

b) The address of the principal office of CSC is 2101 East El Segundo Boulevard, Suite 302, El Segundo, CA 90245

c) The principal business of CSC is as an Investment Adviser.

d) CSC, nor any of its members has, during the last five years, been convicted in a criminal proceeding (excluding traffic violations
or similar misdemeanors).

e) CSC, nor any of its members was, during the last five years, a party to a civil proceeding of a judicial or administrative
body of competent jurisdiction and, as a result of such proceeding, was or is subject to a judgment, decree or final order (1)
enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws, or (2) finding
any violation with respect to such laws.

f) CSC is a Delaware limited liability company.

Item 3.  Source or Amount of Funds or
Other Consideration.

CSC in its capacity as an Investment Adviser will purchase on behalf of its clients. No monies were borrowed for such an acquisition.
The aggregate purchase price of the 6,141,779 Shares beneficially owned by CSC is approximately $33,918,244 including brokerage
commissions.

Item 4.  Purpose of Transaction.

The
Reporting Persons purchased the Shares based on the Reporting Persons’ belief that the Shares, when purchased, were undervalued
and represented an attractive investment opportunity. The Securities reported in this filing have been purchased and held for
investment purposes on behalf of client accounts in which CSC has discretionary investment and voting power. Depending upon overall
market conditions, other investment opportunities available to the Reporting Persons, and the availability of Shares at prices
that would make the purchase or sale of Shares desirable, the Reporting Persons may endeavor to increase or decrease their position
in the Issuer through, among other things, the purchase or sale of Shares on the open market or in private transactions or otherwise,
on such terms and at such times as the Reporting Persons may deem advisable. As such, CSC, subject to applicable legal requirements,
may in the future acquire additional securities of the Issuer on behalf of CSC’s clients or dispose of some or all of CSC’s current
holdings of the Securities in the ordinary course of CSC’s business and the management of its client accounts.

In recent
conversations with the Issuer regarding operational improvements and strategic direction, the Reporting Persons have made suggestions
in regard to enhancing the composition of the Issuer’s Board of Directors (the “Board”). No Reporting Person
has any present plan or proposal which would relate to or result in any of the matters set forth in subparagraphs (a) – (j) of
Item 4 of Schedule 13D except as set forth herein or such as would occur upon or in connection with completion of, or following,
any of the actions discussed herein. The Reporting Persons intend to review their investment in the Issuer on a continuing basis.
Depending on various factors including, without limitation, the Issuer’s financial position and investment strategy, the
price levels of the Shares, conditions in the securities markets and general economic and industry conditions, the Reporting Persons
may in the future take such actions with respect to their investment in the Issuer as they deem appropriate including, without
limitation, continuing to engage in communications with management and the Board regarding the composition of the Board, engaging
in discussions with stockholders of the Issuer and others about the Issuer and the Reporting Persons’ investment, making
proposals to the Issuer concerning changes to the capitalization, ownership structure, board structure (including board composition)
or operations of the Issuer, purchasing additional Shares, selling some or all of their Shares, entering into financial instruments
or other agreements that increase or decrease the Reporting Persons’ economic or beneficial exposure with respect to their
investment in the Issuer, engaging in short selling of or any hedging or similar transaction with respect to the Shares, including
swaps and other derivative instruments, or changing their intention with respect to any and all matters referred to in Item 4.

Item 5.  Interest in Securities of the
Issuer.

The aggregate
percentage of Shares reported owned by each person named herein is based upon 41,186,120 Shares outstanding, which is the
total number of Shares outstanding as of November 6, 2017 as reported in the Issuer’s Form 10-Q filed with
the Securities and Exchange Commission on November 9, 2017.

Item 6.  Contracts, Arrangements,
Understandings or Relationships with Respect to Securities of the Issuer.

Except as otherwise described in this Schedule 13D, there are no contracts, arrangements, understandings, or relationships
(legal or otherwise) among CSC, or between any third party, with respect to any securities of the Issuer.

Item 7.  Material to Be Filed as
Exhibits.

N/A

SIGNATURE

After reasonable inquiry and to the best of my knowledge
and belief, I certify that the information set forth in this statement is true, complete
and correct.