Posts Tagged ‘Sonic Solutions’

NeuLion Completes Acquisition of DivX

Broadcast Vendor M&A | Posted by Joe Zaller
Feb 02 2015

Online video platform NeuLion has completed the acquisition of DivX, a provider of video codecs and software for viewing and authoring.

The total transaction value was approximately $62.5m, comprised of 35.89 million newly issued shares of its common stock and a two-year convertible promissory note in the initial principal amount of $25 million subject to working capital credit of $2 million.

DivX CEO Kanaan Jemili will become CEO of the combined company, and NeuLion CEO Nancy Li will become Executive Vice Chairman of company’s board of directors

This is the fourth time in recent memory that DivX, a former publicly traded company has been acquired.

In 2010 DivX was acquired by Sonic Solutions $323m.  At that time Sonic Solutions said it planned to form a new professional technology division, which combined DivX subsidiary MainConcept with Sonic’s existing professional products group in order to offer a ‘one-stop-shop’ for companies that are looking to incorporate media management technologies into their products and services.

Less than a year later, Sonic Solutions was itself acquired by acquired by Rovi for $720m.

In 2014 Rovi sold DivX and MainConcept to Parallax Capital and StepStone Group for $52.5m in cash, plus a maximum earnout of $22.5m

 

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Related Content:

Press Release: NeuLion Completes Acquisition of DivX

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

Rovi – Parallax Capital: 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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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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