CES 2015: Looking for 4K dominance, NeuLion to acquire DivX
DetailsMichelle Clancy | 06 January 2015
NeuLion plans to acquire digital video expert DivX LLC in a play for 4K Ultra HD dominance, for about $62.5 million.
DivX has licensed its technology to consumer electronics manufacturers, entertainment content rights holders and cable network operators, including an end-to-end HEVC solution. Bringing together NeuLion's managed services and DivX's technology products, NeuLion customers will be able to either build and manage digital video platforms internally or by licensing a fully integrated managed services solution.
According to Futuresource Consulting, 4K adoption is forecast to grow quickly from 2015 onward with over 100 million shipments projected in 2018, representing 38% of the total TV market.
"By delivering interactive viewing experiences to consumers watching live and on-demand content on digital platforms, from desktop to mobile to connected devices, NeuLion has built a roster of the best known brands in professional and college sports and TV Everywhere, such as NFL, NHL, NBA, UFC, Rogers and CCTV," said Nancy Li, CEO of NeuLion. "Now, we are extending our franchise and bolstering our capabilities with our acquisition of DivX's entertainment and consumer electronics customers, advanced 4K video enabling technology products and expansive geographic reach."
Li will become executive vice chairman of the NeuLion board of directors, and Kanaan Jemili, DivX's chief executive officer, will be appointed CEO of NeuLion. The management teams and employees of both companies will be combined, with offices and sales reach throughout North America, Europe and Asia.