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Updated below: Best Buy and Sonic Solutions, parent company of digital download service CinemaNow, have released more details about the on-demand content partnership they announced this summer. One of the more interesting tidbits is that Best Buy has acquired warrants that will allow it to buy an undisclosed amount of Sonic’s common stock, as part of the multi-year deal. The companies kept other financial details under wraps.
Best Buy will license Sonic’s Roxio CinemaNow VOD platform to make movies and TV shows available through BestBuy.com; it will also embed the tech into various web-connected devices it sells, including HDTVs, PCs, set-top boxes and mobile phones. Best Buy says it will launch a marketing blitz to educate consumers (and drum up interest) in the digital download service. Sonic has a similar deal with *Blockbuster*, powering its recently-launched OnDemand video rental service. Release.
Updated: From the SEC filing by Sonic, details of the warrant: It issued a warrant to purchase 668,711 shares of its common stock to Best Buy in consideration of $100,000. Under the terms of the warrant, which vests over a two year period, Best Buy is entitled to purchase Sonic’s common stock at $4.98 per share (the closing price on the date of the warrant