Sonic Solutions has announced today that it will acquire digital media company DivX, merging the operations of the company into its own.
Under the terms of the agreement, Sonic will pay about $326 million in cash and stock, with DivX stock holders receiving 0.514 shares of Sonic and $3.75 cash per share. DivX closed the day trading at $8.79, after closing at $6.95 on Tuesday.
Sonic says the deal should close in September, and says the deal will possibly double its EPS (earnings per share) for the fiscal year that starts in April 2011.
For over 20 years, Sonic has provided the software used to press and distribute most DVDs, but the company recently began an expensive endeavor into downloadable content, teaming up with Best Buy for the CinemaNow online movie service.
With DivX, the company should be able to expand its market, as DivX tech is already embedded in over 300 million devices worldwide, ranging from smartphones to Blu-ray players and HDTVs.
“Our studio, storefront, and consumer electronics partners agree: they want a clear and efficient path to deliver premium content to their customers,” says 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.”
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Vudu, the movie streaming service, has announced that Toshiba and Sanyo have begun shipping HDTVs and Blu-ray players with Vudu-support built-in, meaning the service has now followed through on their promise of being available on a plethora of players and TVs from different manufacturers.
The service will be available on the Toshiba BDX2500 and BDX2700 Blu-ray players, which will also give access to CinemaNow and Netflix. Vudu movies can stream in up to 1080p resolution. The player is BD-Live, has analog and HDMI-based 7.1-channel surround, and can playback locally stored media, including H.264, says Electronista.
Toshiba’s BDX2500 costs $180, and has Internet connectivity via Ethernet or an optional Wi-Fi dongle that costs extra. The 2700 costs $230 but has built-in Wi-Fi.
Additionally, the service will be available via the Sanyo DP55360 55-inch HDTV, which has Internet connectivity via Ethernet. The display is LED-backlit and has a 120Hz refresh rate.
There is still no pricing set for the TV.
The company says Vudu-enabled players and TVs are now available through LG, Mitsubishi, Samsung, SANYO, Sharp, Toshiba and VIZIO, with only one company left to make a deal with; likely Sony.
The Blu-ray players are available at a number of retailers, and the Sanyo is available at Wal-mart, which recently purchased Vudu.
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LG Electronics has launched the BD590 at CES this week, a wireless Blu-ray player that includes a 250GB HDD built-in.
The player will also have the online movie service VUDU integrated. Users can download and rent films in SD or HD.
Additionally, the player can rip and copy CDs using the drive. The new “MusicID” feature will let users hear “an entire song playing within a movie or TV show using the BD590’s remote control.”
As with most BD-Live LG players, Netflix, CinemaNow, YouTube and Pandora are integrated. New to the BD590 are Picasa and Accuweather.
“LG is committed to offering consumers easier access to more content on demand, which is reflected in our 2010 line of Blu-ray products with new content partners, advanced technology and unique design,” adds Peter Reiner, senior VP of marketing at LG Electronics USA.
