AVID TECHNOLOGY, INC.
                          Metropolitan Technology Park
                                  One Park West
                               Tewksbury, MA 01876



                                          July 6, 1998




OFIS Filer Support
SEC Operations Center
6432 General Green Way
Alexandria, VA  22312-2413


Ladies and Gentlemen:

   Pursuant to regulations of the Securities and Exchange Commission,  submitted
herewith for filing on behalf of Avid Technology, Inc. is the Company's Form 8-K
dated the 6th day of July, 1998.

   This filing is being  effected  by direct  transmission  to the  Commission's
EDGAR System.

                                          Very truly yours,


                                          /s/ Frederic G. Hammond


                                          Frederic G. Hammond
                                          General Counsel





                       SECURITIES AND EXCHANGE COMMISSION



                             Washington, D.C. 20549



                                    FORM 8-K



                                 CURRENT REPORT
                   PURSUANT TO SECTIONS 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934



       Date of report (Date of earliest event reported): JUNE 15, 1998



                              AVID TECHNOLOGY, INC.
             (Exact Name of Registrant as Specified in Its Charter)





            MASSACHUSETTS                0-21174              04-2977748
    (State or Other Jurisdiction       (Commission         (I.R.S. Employer
  of Incorporation or Organization)   File Number)       Identification No.)



    METROPOLITAN TECHNOLOGY PARK, ONE PARK WEST
             TEWKSBURY, MASSACHUSETTS                           01876
     (Address of Principal Executive Offices)                 (Zip Code)



                                   978-640-6789
               (Registrant's telephone number, including area code)








ITEM 5.  OTHER EVENTS.

      On June 15, 1998, Avid Technology,  Inc. ("Avid") entered into a Stock and
Asset  Purchase   Agreement  (the   "Agreement")   with  Microsoft   Corporation
("Microsoft")  and  its  wholly  owned  Canadian   subsidiary,   Softimage  Inc.
("Softimage").  Under  the  terms  of the  Agreement,  Avid  will  acquire  from
Microsoft the  outstanding  capital stock of Softimage as well as certain assets
and rights relating to the Softimage  business.  The Agreement provides for Avid
to pay  $79  million  in cash to  Microsoft  and to  issue  to  Microsoft  (i) a
subordinated  note (the  "Note") in the  amount of $5  million,  (ii)  2,344,490
shares of Common Stock and (iii) a ten year warrant to purchase 1,155,235 shares
of Common Stock at an exercise price of $47.65 per share. In addition, Avid will
issue options, with a nominal exercise price, to Softimage employees to purchase
up to  1,911,846  shares of Common Stock  ("Avid  Options") to replace  unvested
Microsoft  options  that will be  forfeited in the  transaction.  The  principal
amount of the Note  would be  increased  by  $39.71  for each  share  underlying
expired Avid Options.  Consummation  of the transaction is subject to applicable
regulatory and other approvals and conditions.







                                   SIGNATURES

      Pursuant to the  requirements of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                                          AVID TECHNOLOGY, INC.



Dated:  July 6, 1998                      By: /s/ William L. Flaherty
                                              -----------------------
                                              William L. Flaherty
                                              Senior Vice President of
                                              Finance, Chief Financial
                                              Officer and Treasurer