Sonic Solutions and DivX, Inc. have signed a merger agreement that allows Sonic Solutions to acquire DivX, Inc. and own all the outstanding shares so that the two corporations will become one.
DivX is a digital media company that allows consumers to enjoy a high-quality video experience across a multitude of device. The DivX brand is recognized worldwide and is supported by over 300 million TVs, DVD Players, Blu-ray Player, and mobile phones. Don't forget about the DivX website, which has over twelve million visits each month.
Sonic believes the DivX technology will give the company a more extensive solution for Internet video delivery including the dominant tools used to prepare content for encoding, playback, and even some forms of DRM, approved by Hollywood of course.
After the merger is complete, DivX stockholders will own approximately 35% of the combined company’s capital stock.
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