Just because Sonic shifted the CinemaNow name into the care of Best Buy, don’t consider it’s receiving the break from operative digital film smoothness options into each device it can. To that end it’s purchased DivX, before the name you knew only as an illegal download enabling codec, though is right away the legitimate craving that has agreements with vital film studios and more than 150 consumer wiring manufacturers. The cash and stock transaction should means a dual to get together as well as make a total universe hold them, with RoxioNow ending up in a millions of devices now ready for DivX whilst increasing possibilities for DivX encoded movies going on sale in the United States. The DivX TV internet video frontend for set-top boxes and connected televisions should additionally get the progress from the understanding, we’ll see how it competes with widgets, TiVo and Google. There’s the DivX TV trailer after the break for those interested plus a press release whilst related financial sum, projections and promises can be found in a related PDF.

Show full PR textSonic to Acquire DivX
Combination Creates Digital Video Delivery Powerhouse; Streamlines “Over a Top” Distribution of Hollywood Movies

Novato as well as San Diego, CA (June 2, 2010) - Sonic Solutions® (NASDAQ: SNIC) as well as DivX, Inc. (NASDAQ: DIVX) today mutually announced which they have sealed a decisive partnership agreement for Sonic Solutions to take DivX, Inc., a leading digital media association, formed in San Diego, California. Under the conditions of a agreement, approved by a play of directors of both companies, Sonic would take all a superb shares of DivX as well as combine DivX operations into those of Sonic. DivX stockholders would embrace the combination of money as well as stock next to to $3.75 in money as well as 0.514 shares of Sonic common batch for any share of DivX they hold. The merger, which is approaching to close in September 2010, is subject to approval of the shareholders of both companies as good as applicable regulatory approvals as well as prevalent shutting conditions.

For more than 20 years, Sonic has been a personality in building technologies for the preparation as well as smoothness of entertainment calm in popular formats - CD, DVD, Blu-ray Disc as well as most not long ago Internet smoothness of video. The merger of DivX is expected to allege Sonic’s goal to broach record which creates it easy and available for retailers, online services, Hollywood studios, as well as manufacturers of CE and mobile devices to discharge premium digital video content over the Internet. DivX is expected to capacitate Sonic to lower as well as broaden the record it offers for Internet-based video smoothness as well as enhance its relations with heading retailers and consumer wiring manufacturers.

DivX is the heading digital media association which enables consumers to suffer the high-quality video knowledge across any kind of device. The DivX brand is recognized worldwide and supported by the village of millions of consumers. DivX record - encoders for formatting video, decoders for playback, and digital rights management (DRM) for calm insurance - resides upon over 300 million inclination shipped into a tellurian marketplace from all major CE manufacturers together with over 8,500 models of digital televisions, DVD and Blu-ray Disc players, as well as over 80 dissimilar mobile handsets. In addition, a DivX web properties suffer some-more than 12 million singular visits each month.

Sonic believes which a merger of DivX will provide the number of key benefits:

• The acquisition is expected to be accretive to Sonic’s shareholders, potentially doubling mercantile year 2012 gain per share on the non-GAAP basis.

• The DivX technologies have been expected to give Sonic a more endless resolution for Internet video delivery including a widespread collection for content credentials in “the cloud cover,” video playback, as well as Hollywood-approved DRM.

• DivX is approaching to yield precedence to Sonic’s strategy of consumer wiring deployment – a DivX player and DRM is deployed in products from some-more than 150 dissimilar CE manufacturers worldwide upon millions of inclination.

• The DivX brand is well known worldwide as an indicator of harmony, peculiarity, and palliate of make use of.

Overall, the combination of DivX technology, capabilities, as well as marketplace place is approaching to allege Sonic’s goal: to have edition, smoothness, and delight of cinema over a Internet as easy and drawn out as DVD delivery is currently.

“Our college of music, storefront, and consumer electronics partners determine: they want a clear as well as fit trail to broach premium calm to their business,” pronounced Dave Habiger, president as well as CEO of Sonic Solutions. “The multiple of Sonic and DivX promises to be the foremost provider of platforms, tools, and technologies for the efficient smoothness of premium video party to probably any type of consumer electronics device. We expect DivX’s deep technology as well as extended deployment in a CE and mobile areas to give us significant precedence as you enhance as well as raise our RoxioNow reward party height.”

“Sonic as well as DivX have been both marketplace leaders in digital media and share identical visions about a better media future for consumers,” stated Kevin Hell, CEO of DivX. “We additionally share identical cultures and both commend a tremendous market event which lies ahead for Internet video services. By mixing the products, technologies, partnerships, as well as gifted employees, you right away emanate the finish end-to-end delivery platform for digital media, with stretched reach and capacity, at the undiluted time to gain on a market’s fast development. With a merger of DivX, Sonic should be intensely well positioned to serve existent customers, attract new partners, as well as enlarge our market participation as well as intensity.”

The stream Sonic government group (including Dave Habiger, Clay Leighton, Paul Norris, Mark Ely, as well as Matt DiMaria) will lead a combined association, protracted with pass managers as well as executives from DivX. Kevin Hell, DivX’s arch executive military officer, Dan Halvorson, DivX’s arch monetary military officer and senior manager vice boss, operations, as well as David Richter, DivX’s senior manager vice president, commercial operation & legal affairs as well as general warn, will be cooperating closely with a Sonic group to tighten a transaction and confederate a companies, though will not goon in the combined company in their stream positions. Following completion of a partnership, DivX stockholders will own approximately 35% of a total company’s collateral batch. Sonic expects to supplement dual members of a DivX house of directors, to be named after, to the board at the shutting of the contract.

Oppenheimer & Co. is behaving as DivX’s exclusive financial confidant in the transaction.

Sonic Earnings Preview and Announcement
As formerly announced, Sonic plans to recover its financial formula for a fourth fiscal quarter as well as full year (ending March 31, 2010) upon Thursday, June 3. In order to promote contention with investors on the stroke of a DivX merger, Sonic is announcing currently a following pass points from the arriving earnings announcement:

For a fourth quarter ended March 31, 2010, Sonic recorded $26.4 million in income, $1.2 million in net income or $0.04 per entirely diluted share upon a GAAP basement. Sonic expects which, for the first quarter of the 2011 mercantile year (the entertain finale June 30, 2010), it will beget approximately $25.0 million in income.

Shareholders and investors meddlesome in some-more detail are encouraged to examination a announcement Sonic will have tomorrow, as good as Sonic’s Annual Report upon Form 10-K, which it skeleton to record before long. In light of today’s announcement, Sonic will not be hosting the formerly scheduled earnings conference call upon June 3, as well as instead encourages participation in a following joint discussion call.

Conference Call Regarding DivX Acquisition Members of the Sonic as well as DivX management teams will lead the discussion call to plead sum of a merger upon Wednesday, June 2, 2010 during 5:30 am PDT (8:30 am EDT). Investors have been invited to attend by dialing (877) 293-5493 (domestic) or (707) 287-9350 (international) or via webcast on a financier sections of the Sonic Web site during www.sonic.com/about/investor/ and the DivX Web site during http://investors.divx.com/. A write replay will additionally be available shortly following the call on Wednesday, June 2, 2010 by midnight (PT) upon Wednesday, June 9, 2010. The replay will be accessible by dialing (800) 642-1687 (domestic) or (706) 645-9291 (international) and referencing a discussion ID series 79492916. A replay will additionally be accessible via Webcast at www.sonic.com/about/investor/ as well as a DivX Web site during http://investors.divx.com/.

About DivX
DivX, Inc. is the heading digital media company which enables consumers to suffer the high-quality video knowledge opposite any kind of device. DivX creates, distributes as well as licenses digital video technologies that span the “3 screens” comprising today’s consumer media environment-the PC, the television as well as mobile inclination. Over 300 million DivX inclination have shipped into a marketplace from heading consumer electronics manufacturers. DivX additionally offers content providers as well as publishers the complete resolution for a distribution of secure, high-quality digital video content. Driven by a globally famous code and a ardent village of hundreds of millions of consumers, DivX is simplifying the video experience to capacitate a digital home.