Pulse2 Technology and Social Media News » DivX

Rovi To Acquire Sonic Solutions For $720 Million

Amit Chowdhry — Thu, 23 Dec 2010 20:54:31 +0000

Rovi Corporation (NASDAQ:NOVI) has declared an intent to buy out Sonic Solutions as part of a $720 million deal. Sonic and Rovi will work together on creating digital video distribution software. Sonic is known for creating a premium programming service called RoxioNow. As part of the acquisition, Rovi will also gain ownership of DivX. The acquisition is expecting to close in early 2011. [paidContent]

Sonic Solutions Acquires DivX In $323 Million Deal

Amit Chowdhry — Wed, 02 Jun 2010 18:08:26 +0000

Sonic Solutions has acquired digital media company DivX for $323 million as part of a cash and stock deal. This deal puts DivX’s stock at about a $9.83 per share worth. This is a 41% premium over Tuesday’s closing price at $6.95. DivX is known for their codec software, which allows videos to be viewed across different players. DivX earns most of its revenue from licensing technology to OEMs. [paidContent]

DivX Buys AnySource For $15 M, Of Which $7.5M Is Earnout

Amit Chowdhry — Thu, 03 Sep 2009 02:01:01 +0000

DivX is a video technology firm best known for their movie video format. DivX (NASDAQ:DIVX) has just announced that they will be acquiring AnySource Media. The acquisition will be for $7.5 million in cash right away and another $7.5 million based on a three year earn out.

Based in Philadelphia, AnySource develops video streaming software that can run on web-enabled HDTVs. AnySource’s software can also accept e-commerce transactions through the HDTVs themselves too.

“AnySource is a solid strategic complement to DivX,” stated AnySource Media CEO and co-founder Mike Harris. “We are very excited to join DivX to redefine the TV viewing experience for millions of consumers, leveraging DivX’s technology and vast ecosystem which now includes more than 200 million DivX devices shipped into the market.”

As part of the acquisition, Harris will be joining the DivX board of directors and report to Kevin Hell, CEO of DivX.

DivX Suing Yahoo! Over Ad Deal

Amit Chowdhry — Tue, 18 Nov 2008 17:43:24 +0000

DivX, Inc. (NASDAQ:DIVX) is suing Yahoo! Inc. (YHOO) over a canceled advertising deal. Yahoo! planned on signing a two year partnership with DivX, but changed their mind. This directly affected the financial results that DivX had for 2008 and 2009.

DivX filed the lawsuit at the California Superior Court in Santa Clara, Calif.

“Yahoo‘s decision to breach is unjustified given DivX’s fulfillment of its obligations under the agreement,” stated DivX CEO Kevin Hell.

The partnership was decided upon in September 2007. Yahoo! wanted to settle with DivX out of court to come up with a solution. But it never came into fruition.

“Yahoo is disappointed with DivX’s decision to pursue legal action rather than renegotiate this agreement,” stated a Yahoo! spokesman. “We intend to vigorously defend ourselves in court, but will reserve further comment until we’ve had an opportunity to review the suit,” the Yahoo spokesman added.

DivX adjusted their 2008 earnings to about $90-$92 million from a previous forecast of $95-$97 million.