Blog Post

DivX Acquires Video Search Startup Veatros For $4.25 Million; Invests $3.5 Million in DeviantArt

DivX (Nadsdaq: DIVX), the video codec firm, has bought Veatros, a Kansas-based startup spun out of University of Kansas. Veatros’s technology is designed to conduct real-time digital video processing and will be used by DivX primarily for producing enhanced video search and discovery services, the company said. The search functionality will be integrated with the DivX Connected platform, for network-based media in the living room.

The startup had investment from T2 Venture Capital. Vatros’ website is down, but this 2003 story tell you what the company did. More in release. Though the amount was not disclosed in the release, from its recently filed 10-Q, that amount is for a total of up to $4.25 million, “comprised of an initial upfront cash payment of $2.0 million, and subsequent cash payments up to $2.25 million upon the achievement of certain technology related milestones”.

Also, Davis Freeberg at SeekingAlpha dug further into DivX’s 10-Q, and also found out that the company invested the full $3.5 million first round into DeviantArt, a Hollywood-based online art community. We covered the funding here.

2 Responses to “DivX Acquires Video Search Startup Veatros For $4.25 Million; Invests $3.5 Million in DeviantArt”

  1. Laura Gauch

    I am so excited about this–my parents created the company Veatros, and I actually named it. It's a fascinating technology, and can have many applications–Times Warner used to use it to monitor what commercials are being aired when. It could even be used to enforce copyrights on youtube–before a video is uploaded, it could get compared to the database of copyrighted videos, and if it's a match, it gets rejected. The process would take seconds. Anyone who wants to protect their copyrighted material would just have to put the original in the database, and it couldn't be posted. That way, no one would have to bother with manually trying to police the videos, which is impossible to do correctly.
    I suppose youtube has missed its chance, though, unless there's a way for DivX to subcontract the program to them.