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Video Codec Firm DivX Being Bought By Sonic Solutions for $323 Million

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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