Posts Tagged ‘Rovi’

Broadcast Vendor M&A: Rovi Sells DivX and MainConcept to Parallax Capital and StepStone Group for $75 Million

Broadcast Vendor M&A, SEC Filings | Posted by Joe Zaller
Apr 01 2014

Rovi has sold its DivX and MainConcept businesses to Parallax Capital Partners and StepStone Group in a cash and stock deal valued at up to $75m

Under the terms of the deal, Rovi will receive an initial payment of $52.5m, and may receive up to three earnout payments over the next three years that could add another $22.5m to the transaction price. Any earnout payments will be based on the achievement of upon certain milestones agreed by the parties in the transaction.

Rovi had previously its intention to sell the DivX and MainConcept before the end of the second quarter of 2014 as part of a strategic effort to focus on growth opportunities related to its core entertainment discovery technologies and services.

“The sale of DivX was the last of a number of significant steps we’ve taken over the past year to realign the organization for sustainable, long-term growth and I’m pleased we met our commitment to complete this transaction, and did so ahead of schedule,” said Thomas Carson, President and CEO, Rovi Corporation.

The sale price represents a significant drop in value for DivX, which was acquired by Sonic Solutions in June 2010 for $323m.  Less than six months later, Rovi acquired Sonic Solutions for $720m.  At that time, Rovi said the combination of Rovi and Sonic “will be able to power the next generation of digital entertainment offerings with content discovery, delivery, and enhanced interactivity capabilities that support advertising and drive consumer engagement.”

The transaction is expected to close by April 1, 2014.

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Related Content:

DivX Purchase Agreement

Press Release: Rovi Announces Sale of DivX and MainConcept Businesses

Press Release: Parallax Capital Partners and StepStone Group to Acquire DivX

Rovi to buy Sonic for $720 million

Sonic Solutions to buy DivX in $323M bid to become digital media leader

Sonic Solutions Integrates Newly Acquired MainConcept, Forms New Pro Technology Division

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Rovi Ends All Current Lawsuits Against LG, Licenses Patents for Use in All LG Products

Broadcast technology vendor financials, SEC Filings | Posted by Joe Zaller
Mar 04 2013

Electronic program guide technology provider Rovi disclosed through a regulatory filing that it has entered into a multi-year licensing agreement with LG Electronics for the use of its patent portfolio in “all LG products.”  Deal terms were not provided.

According to the filing, the new licensing agreement “includes the dismissal of all current lawsuits,” which presumably includes this complaint for patent infringement filed by Rovi against LG in May 2012 in the US District Court for Delaware.

The catalyst for the new arrangement between Rovi and LG may be the fact that LG recently won a patent infringement case filed by Rovi in German courts.

According to Korea Times article, Rovi filed for an injunction with the German court against LG Electronics in April 2012, to ban sales of its televisions, claiming LG has infringed on technology patents for its products.  The lawsuit came as LG Electronics rejected Rovi’s request to pay license fees for its patent. LG Electronics argued that the patent claimed by Rovi Corporation is irrelevant to its products, adding the U.S. firm’s stance on the scope of patent is “too broad.”

German Courts ruled in favor of LG in December 2012.

 

Re-Affirms Business Outlook

Rovi, which also owns Divx and codec provider MainConcept, used the filing to re-affirm its business outlook for 2013, saying that “while the settlement with LG was successfully achieved earlier in the company’s fiscal year 2013 than previously anticipated by the company, the company continues to expect the timing of adjusted pro forma revenue to be approximately 47% and 53% in the first and second halves of 2013, respectively.”

Rovi says it expects its adjusted pro-forma revenue for 2013 to be between $630m and $660m, and adjusted pro-forma income per common share to be between $1.90 and $2.20, excluding discontinued operations.  The company also said its revenue expectations for the fiscal first quarter, ending March 31, 2013, are unchanged from previously issued guidance.

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Related Content:

Rovi SEC Filing: Discloses LG Patent Licensing Agreement, and Dismissal of all Current Lawsuits

Korea Times Article: LG defeats patent infringement claims in German court

Rovi Complaint for Patent Infringement against LG Electronics, Delaware District Court May 2012

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© Devoncroft Partners. All Rights Reserved.

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The 2012 Big Broadcast Survey

broadcast technology market research | Posted by Joe Zaller
Apr 03 2012

I am pleased to announce that the 2012 Big Broadcast Survey (BBS), our annual study of the broadcast market, has been completed and that the reports from this project will be published soon.

We once again had record-breaking participation in this project.   Almost 10,000 broadcast professionals in 100+ countries participated in the 2012 BBS, making it the largest ever and most comprehensive market study of the broadcast industry.  We are humbled by and grateful for the unprecedented participation from so broadcast industry professionals who took the time to contribute to this year’s study.

The 2012 BBS offers unique insight into the broadcast industry by providing information about industry trends, budgets, capital projects, HD and file-based upgrade cycles, and more. It also provides detailed brand data on more than 100 broadcast technology vendors in 30+ product categories (see list in post tags below).

We created the BBS to help our clients, and readers of this website, better understand the issues and trends impacting the broadcast and digital media industries.  We received many positive comments about the BBS from both participants and our research clients, so we feel that we are on the right track and we will continue to publish data about the market on a regular basis.

We will begin to post summary data from the 2012 study on this website, so please check back regularly.

I will also be presenting a summary of the 2012 data on Sunday April 15th at the NAB Show, at a half-day conference session called Media Technology: Strategy and Valuation, which is being produced by Devoncroft, Silverwood Partners and the NAB Show.  It’s free for all registered NAB Show attendees, so please come along.

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Related Content:

Devoncroft – 2012 Broadcast Market Research Reports Now Available

Devoncroft – 2011 Broadcast Market Research Articles

NAB Media Technology: Strategy and Valuation Conference presented by Devoncroft, Silverwood and the NAB

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© Devoncroft Partners. All Rights Reserved.

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Recent Regulatory Filings From Broadcast & Digital Media Technology Vendors

broadcast industry technology trends, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Mar 06 2012

This is the time of year when public companies file a variety of documents with securities regulators.

If you really want to understand what’s going on at these businesses, it’s worth spending the time to review these filings.

Here’s a sampling of recently filed documents from broadcast and digital media technology vendors, in alphabetical order by company.

 

Avid 2011 10-K Filing

Avid 8-K Filing Details Executive Bonus Plan

Belden 2011 10-K Filing

Digital Generation (DG Fastchannel) 2011 10-K Filing

DTS Audio 2011 10-K Filing

Harmonic 2011 10-K Filing

Harmonic 8-K Filing – Details Executive Salary and Bonus Plan

Miranda Q4 and Full Year 2011 MD&A (Management Discussion and Analysis)

RealD 10-Q Filing

Rovi 2011 10-K Filing

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© Devoncroft Partners. All Rights Reserved.

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More Broadcast M&A as Ross Video Buys Second Company This Year

broadcast technology market research | Posted by Joe Zaller
Aug 17 2010

Production switcher and infrastructure vendor Ross Video announced today that it is buying Norpak from current parent Rovi.

Norpak produces Nielsen encoders, closed caption inserters as a variety of data insertion products, and has been a member of the Ross-led OpenGear Alliance for the past three years.

According to Ross Video CEO David Ross the acquisition of Norpak will enable the company to provide a “more complete customer solutions and will be a significant benefit to our openGear and other product lines as we move forward.”

This is the second company that Ross has purchased in 2010.  The company recently announced that it entered into a letter of intent to buy 100% of the shares of Australian-based Codan Broadcast Products Pty Ltd, a provider of infrastructure and routing products.

This is the third Ross acquisition in the past two years.  In 2009 Ross purchased Dutch graphics firm Media Refinery.

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