UPDATED: Online Movie Service Cinemanow Acquired By Sonic Solutions, For Mere $3 Million

Updated: The sale price was even more of a fire sale: a mere $3 million, it turns out, and it also assumes some liabilities. Wow, that would have surely hurt its investors, listed below. Lionsgate had an 18.6 percent stake in the company. According to Sonic, CinemaNow has been generating around $1 million-$1.2 million per quarter in revenue on expenses of $1 million-$1.5 million, reports Variety.

Original post: Cinemanow, the online movie service that has been around for a long time, has been bought by Sonic Solutions, the digital media software company. Terms of the deal were not disclosed, but rival Movielink got sold for a fire-sale price of $7 million last year to *Blockbuster*, and while Cinemanow’s price is probably not that low, it isn’t likely to be exponentially higher as well…see update above.

Cinemanow, founded in 1999, was backed by Lionsgate, but never really took off, and had been languishing from slow growth, as other online TV-focused (and more open) rivals like YouTube, Hulu and others took off. It was one of the first ones to offer DVD burning with some movies, and also offered limited