Sonic Solutions to acquire DivX3 June 2010
Sonic Solutions and DivX have signed a definitive merger agreement for Sonic Solutions to acquire DivX, Inc, with the stated goal to streamline ‘over the top’ distribution of Hollywood films.
The acquisition of DivX (expected to close in September and subject to the usual corollaries) is expected to enable Sonic to deepen and broaden the technology it offers for internet-based video delivery and expand its relationships with leading retailers and consumer electronics manufacturers.
DivX technology resides on over 300 million devices shipped into the global market from all major CE manufacturers including over 8,500 models of digital televisions, DVD and Blu-ray Disc players, and over 80 different mobile handsets. In addition, the DivX web properties enjoy more than 12 million unique visits each month.
The DivX technologies are expected to give Sonic a more extensive solution for internet video delivery including the dominant tools for content preparation in "the cloud," video playback, and Hollywood-approved DRM.
"Our studio, storefront, and consumer electronics partners agree: they want a clear and efficient path to deliver premium content to their customers," said Dave Habiger, president and CEO of Sonic Solutions. "The combination of Sonic and DivX promises to be the foremost provider of platforms, tools, and technologies for the efficient delivery of premium video entertainment to virtually any type of consumer electronics device. We expect DivX’s deep technology and broad deployment in the CE and mobile areas to give us significant leverage as we expand and enhance our RoxioNow premium entertainment platform."