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Summary:

Rovi Corp. declared its intent to acquire Sonic Solutions late Wednesday in a deal worth $720 million. The combined company could have the c…

Rovi

Rovi Corp. declared its intent to acquire Sonic Solutions late Wednesday in a deal worth $720 million. The combined company could have the clout to accelerate the adoption of digital distribution in video entertainment.

The deal marries Rovi’s strengths in content metadata and electronic programming guides with the broad footprint Sonic has established in providing an infrastructure for selling movies and TV shows across a range of devices.

Sonic services the Hollywood studios with RoxioNow, a branded service that makes premium programming available to consumers for purchase via digital storefronts operated by companies including Best Buy and Blockbuster (NYSE: BBI). Earlier this year, Sonic itself acquired DivX (NSDQ: DIVX), a video format accessible to 300 million devices worldwide. Sonic will give Rovi the opportunity to extend its TotalGuide platform and advance its interests in extending advertising opportunities.

The acquisition is expected to close in the first quarter of 2011.

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  1. Christopher Levy Friday, December 24, 2010

    Um Best Buy and Blockbuster’s online sales don’t even rank in the top 20 right but this deal is going to make Rovi better? I don’t get how. CinemaNow=Borked. Best Buy and BlockBuster offerings= Not Charting. Where’s the beef?

  2. Albert Sandoval Friday, December 24, 2010

    Rovi has a strong footprint in the operator space, I wouldn’t pay too much attention to rankings at the moment, the play right now is positioning. This acquisition will fast-track Rovi to where they need to be as a platform and as a provider with brands that deliver high-level entertainment content, all as an enhancement to their “TV Guide” service. It’s a race to being THE end-to-end operator, service provider and OTT multi-screen solution which is the pot of Gold at the end of the rainbow… This mix of players is not too shabby…

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