Sonic, DivX to create digital video delivery powerhouse
Premium video content technology and services provider Sonic Solutions and digital media company DivX have jointly announced a definitive agreement that will see Sonic Solutions acquire DivX.
Under the terms of the agreement, approved by the boards of directors of both companies, Sonic would acquire all the outstanding shares of DivX and merge DivX operations into those of Sonic. The acquisition, which is expected to close in September 2010, is subject to approval of the shareholders of both companies as well as applicable regulatory approvals and customary closing conditions.
The DivX codec is present 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. DivX technology includes encoders for formatting video, decoders for playback, and digital rights management (DRM) for content protection.The acquisition of DivX is expected to advance Sonic's mission to deliver technology that makes it easy and convenient for retailers, online services, Hollywood studios, and manufacturers of CE and mobile devices to distribute digital video content over the Internet, the so-called ‘OTT television’.