Stay on Top of Enterprise Technology Trends
Get updates impacting your industry from our GigaOm Research Community
Someone finally cares enough for Divx. Sonic Solutions, the digital media solutions firm and owner of CinemaNow online movie service, has announced its intent to buy DivX (NSDQ: DIVX), the long outlier in the digital video codec space. Sonic will pay $3.75 in cash and 0.514 of its own shares for every DivX share, which is about $9.83 a DivX share at Tuesday’s closing price, or around $323 million in total. That is a 41 percent premium to Tuesday’s close price for DivX shares. The deal is expected to close in Sep, after both shareholders approve it.
Here’s the rationale from Sonic’s side: “Sonic has been…developing technologies for the preparation and delivery of entertainment content in popular formats