June 3, 2010; ft.com; Sonic Solutions set to buy Divx; by Chris Nuttall.
Sonic Solutions yesterday said it was buying DivX for $323m in a deal that creates a significant force in digital content delivery in the growing internet TV market.
Sonic has been digitising and delivering video from the Hollywood studios in a variety of formats to a wide range of devices and owns the RoxioNow, formerly known as CinemaNow, streaming movie service, available through internet-connected TVs and Blu-ray players.
DivX's video encoding and content protection has been shipped on more than 300m consumer electronics devices.
The companies are competing with hardware and software companies such as Google, Microsoft, Roku, Seagate, Sony, Vudu, Yahoo and Western Digital in offering internet channels and services that stream "over-the-top" of regular TV.
"This deal gives us a massive footprint on consumer electronic devices at a monumental time in the delivery of video, which is moving quickly to the over-the-top model and streaming - we're here to capitalise on that," said Dave Habiger, Sonic chief executive, in an interview with the Financial Times.
Chris Nuttall, San Francisco