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Novato, Calif. – Sonic Solutions (NASD:  SNIC) announced on Wednesday
that it has acquired DivX, the developer of a video codec and distribution
service, in a deal valued at about $323 million.

Novato,
Calif.-based Sonic Solutions owns the CinemaNow online movie distribution
service.

The company said it expects DivX to allow it to broaden the technology
it offers for Internet-based video delivery, and expand its relationships with
retailers and consumer device makers.

San Diego-based DivX’s video format
currently resides on over 300 million shipped devices, including 8,500 models
of digital TVs, DVD and Blu-ray Disc players, and over 80 mobile handsets.

Its
DivX Web properties also attract over 12 million unique monthly visitors.

The
current Sonic management team will lead the combined company, while DivX CEO
Dan Halvorson and other top executives will not continue in their positions in the combined company following the transaction’s closing.

 

Related Links:
http://www.sonic.com

http://www.divx.com

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