Attached files
| file | filename |
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| 8-K - SONIC SOLUTIONS/CA/ | v198920_8k.htm |
| EX-3.1 - SONIC SOLUTIONS/CA/ | v198920_ex3-1.htm |
| EX-99.2 - SONIC SOLUTIONS/CA/ | v198920_ex99-2.htm |
| EX-99.3 - SONIC SOLUTIONS/CA/ | v198920_ex99-3.htm |
| EX-10.1 - SONIC SOLUTIONS/CA/ | v198920_ex10-1.htm |
Exhibit
99.1
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News
Release
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Chris
Taylor
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+1
408-367-5231
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chris_taylor@sonic.com
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Sonic
Completes DivX Acquisition
Combination
Will Accelerate Industry Transition to Online Video Delivery
Novato, CA (October 8, 2010) —
Sonic Solutions® (NASDAQ:
SNIC) today announced that it has completed the acquisition of DivX, Inc., based
in San Diego, California. The addition of DivX® brings
widely deployed digital media technologies, an embedded CE footprint of over 300
million devices, a strong consumer brand, and a global market presence to
Sonic’s expanding position as the leading supplier of services and technologies
for the distribution of premium video content over the Internet.
“The
acquisition of DivX accelerates our vision to make accessing entertainment over
the Internet directly from home and mobile devices as pervasive as physical disc
consumption is today,” said David Habiger, President and CEO of the combined
company. “With DivX, we instantly add hundreds of millions of consumer
electronics devices to our footprint; make it faster and more efficient for
device manufacturers, retailers, and Studios to launch digital services; and
increase our global reach, particularly in the European market.”
As the
world’s foremost developer and supplier of professional DVD and Blu-ray
authoring systems, Sonic has worked with Hollywood for more than a decade to
bring movies to consumers. Sonic’s Roxio® division
leads the industry for consumer media creation and management applications with
hundreds of millions of units shipped. Sonic’s RoxioNow™ division
develops and licenses a universal “over-the-top” video platform for retailers,
Hollywood Studios, consumer electronics manufacturers, and PC OEMs to offer
movies and TV shows over the internet. Major retailers – Best Buy, Blockbuster,
Sears/Kmart, Cineplex Entertainment, HP, Dell and many others – today license
RoxioNow to power online video stores, while CE companies – Fujitsu, Funai
Electric, LG, Panasonic, Pioneer, Samsung, Sony, and others – embed the RoxioNow
platform in over 350 product models.
The
acquisition of DivX brings Sonic a vast installed base of CE devices, all of
which ship with Digital Rights Management (DRM) for the secure playback of
Hollywood movies even when not connected to the Internet. DivX’s DRM, an
important ingredient for the secure distribution of copyrighted video content,
has been approved by major Hollywood Studios. DivX’s H.264 video encoding tools
serve as the de-facto standard for a wide variety of premium content stored in
“the cloud” for delivery over the internet. Finally, DivX’s strong global
presence and recognized brand will speed Sonic’s expansion into more
geographical markets.
“Our
strategy is to deliver all the backend pieces that make it easy for Studios,
retailers, and device manufacturers to offer over-the-top, premium entertainment
experiences,” said Mark Ely, newly appointed, President, Strategy, Sonic
Solutions. “We are the only company that has a true ‘plug and play’ solution for
partners interested in putting custom-media storefronts on connected consumer
electronics. The addition of DivX increases our capacity and capabilities,
provides a solution for non-connected devices, and brings us even closer to
satisfying consumers’ desire to have their Hollywood entertainment wherever,
whenever, and however they want.”
Sonic
Completes DivX Acquisition
“DivX and
Sonic are a tremendous fit,” said Tim Bajarin, Principal Analyst, Creative
Strategies, Inc. “For CE, PC and mobile manufacturers, the Sonic-DivX
combination means that they can license a single solution which can be used to
deploy multiple content stores rapidly across an expanding ecosystem of devices.
For retailers, it means that they can more easily create their own branded
stores and rely on Sonic to provide all the under-the-hood technology. And, for
the content community, Sonic plus DivX helps them directly connect to
consumers.” “Our
partners have responded very positively to the news of the union between Sonic
and DivX,” said Matt Milne, Executive Vice President and General Manager, DivX.
“Moving forward, the combination of the installed base of DivX Certified
products and the industry-leading RoxioNow content platform will greatly enhance
the services and support we can offer partners, as well as expand the choices
consumers have for the consumption of high-quality digital
entertainment.”
The
shareholders of both Sonic and DivX separately approved the merger that was
previously announced by the two companies on June 2 of this year.
About
Sonic Solutions
Sonic
Solutions® (NASDAQ:
SNIC) enables digital media from Hollywood to home. For more than a decade,
Sonic product, service, and technology brands including Roxio®,
RoxioNow™,
DivX®, and
MainConcept, have
fueled home entertainment, powered rich digital media functionality on a range
of platforms for a variety of partners, and inspired unique personal media
experiences for hundreds of millions of consumers. Sonic technologies are now
combining to deliver a universal platform for Hollywood Studios, retailers,
consumer electronics manufacturers, and PC OEMs that provides consumers instant
access to premium entertainment from virtually anywhere. Sonic Solutions is
headquartered in Marin County, California. Learn more at www.sonic.com.
Forward
Looking Statements
This
release may contain forward-looking statements that are based upon current
expectations, including the expected effects of the merger on the combined
operations and financial results of Sonic Solutions and DivX and other matters
related to the merger as well as the launch, distribution, and market acceptance
of Sonic’s applications, technologies and services. Actual results
could differ materially from those projected in the forward-looking statements
as a result of various risks and uncertainties, including those discussed in
Sonic Solutions' and DivX’s annual and quarterly reports filed by Sonic
Solutions and DivX with the Securities and Exchange Commission (the “SEC”). This
press release should be read in conjunction with most recent annual reports on
Forms 10-K, Form 10-Q and other reports filed by Sonic Solutions and DivX with
the SEC, which contain more detailed discussion of the businesses and risks of
Sonic Solutions and DivX including risks and uncertainties that may affect
future results. Neither Sonic Solutions nor DivX undertakes to update
any forward-looking statements as of Sonic Solutions and DivX except as required
by law.
Sonic,
the Sonic logo, Sonic Solutions, Roxio, RoxioNow, DivX and Hollywood to Home,
are trademarks or registered trademarks owned by Sonic Solutions in the United
States and/or other countries. All other company or product names are trademarks
of their respective owners and, in some cases, are used by Sonic Solutions under
license.