MEDIA RELEASE PR35959
DivX Acquires AnySource Media, Creator of On-Demand Internet Television Platform
SAN DIEGO and MALVERN, Pa., Sept. 3 /PRNewswire-AsiaNet/ --
AnySource's streaming platform accelerates DivX's development
of turn-key Internet TV solution
DivX, Inc. (Nasdaq: DIVX), a digital media company, today announced it
has acquired AnySource Media LLC, creator of a leading Internet Television
streaming platform that allows users to directly connect their TV to a wide
variety of content and services on the Internet, enabling hundreds of virtual
on-demand channels.
"Internet TV will transform the landscape for media distribution and
advertising as we know it," stated Kevin Hell, Chief Executive Officer, DivX,
Inc. "The AnySource streaming platform combined with our high-quality device
certification program and our deep relationships with both consumer
electronics companies and Hollywood studios puts us in an enviable position
in this rapidly emerging market. We look forward to bringing these two great
teams together to realize our open, consumer-focused vision for digital media
as it moves to a connected world."
Based in Malvern, PA, AnySource Media has developed a software solution
that can support e-commerce transactions and enable rapid navigation and
seamless playback of hundreds of virtual on-demand channels directly via
HDTVs, Blu-ray disc players and other consumer electronics devices such as
mobile phones. The AnySource Internet Video Navigator(TM) enables online
video on a living room TV and easy access to Internet-based videos, music,
photos, games and data content at the touch of a button through a standard
remote control.
"AnySource is a solid strategic complement to DivX," said Mike Harris,
Chief Executive Officer and co-founder, AnySource Media, and who has joined
the DivX management team reporting to Kevin Hell. "We are very excited to
join DivX to redefine the TV viewing experience for millions of consumers,
leveraging DivX's technology and vast ecosystem which now includes more than
200 million DivX devices shipped into the market."
Total consideration for the acquisition is $7.5 million, paid in cash at
closing, and additional cash payments up to $7.5 million payable over three
years upon the achievement of certain technical, and revenue and distribution
milestones.
"The acquisition of AnySource's technology platform and the addition of
their talented team advance our development schedule by at least one year,"
said Dan Halvorson, Executive Vice President and Chief Financial Officer.
"For the remainder of 2009, the acquisition will increase our headcount and
integration costs by approximately $1.3 million, or $0.02 per diluted share,
net of taxes."
About DivX
DivX, Inc. is a digital media company that enables consumers to enjoy a
high-quality video experience across any kind of device. DivX creates,
distributes and licenses digital video technologies that span the "three
screens" comprising today's consumer media environment-the PC, the television
and mobile devices. Over 200 million DivX devices have shipped into the
market from leading consumer electronics manufacturers. DivX also offers
content providers and publishers a complete solution for the distribution of
secure, high-quality digital video content. Driven by a globally recognized
brand and a passionate community of hundreds of millions of consumers, DivX
is simplifying the video experience to enable the digital home. For more
About AnySource
AnySource Media is the creator of Internet Video Navigator(TM), a part of
its Internet Television platform, which allows the television set to be
directly connected to the Internet. The Malvern, PA - based company produces
software that can be embedded directly into HDTVs and other consumer
electronics devices with a data center back-end to support easy and fast TV
navigation and e-commerce transactions, as well as content and data
aggregation deals for consumer electronic devices. For more information,
Forward-Looking Statements
Statements in this press release that are not strictly historical in
nature constitute "forward-looking statements." Such statements include, but
are not limited to, statements regarding the anticipated benefits of the
acquisition of AnySource Media LLC to DivX, its customers and shareholders,
activities expected to occur in connection with the acquisition, the
anticipated utilization of AnySource Media products and technology following
the acquisition, the ability of AnySource Media products and technology to
increase the Company's market opportunity and accelerate penetration of key
emerging products, and the potential impact of the acquisition on earnings.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause DivX's actual results to be
materially different from historical results or from any results expressed or
implied by such forward-looking statements. These factors include, but are
not limited to: risks related to the integration of AnySource Media
technology with the Company's products; risks related to the implementation
of the acquisition; risks related to any uncertainty surrounding the
acquisition; risks associated with any disruption to the Company as a result
of the acquisition; risks that the expected financial effect of the
acquisition may not be realized; risks that the expected customer benefits
may not be realized and risks associated with the operation of the business
in general; risks that the anticipated benefits of the acquisition may not
materialize to the extent expected, or at all; the risk that anticipated
market opportunities may not materialize at expected levels, or at all; risks
and uncertainties related to the maintenance and strength of the DivX brand;
the risk that customer use of DivX technology may not grow as anticipated;
the risk that the Company's activities may not result in the growth of
profitable revenue; risks associated with DivX's ability to penetrate
existing and new markets; risks regarding the effects of competition; the
risk of DivX's dependence on its licensees and partners; risks related to the
effect of intellectual property rights claims; and other factors discussed in
the "Risk Factors" section of DivX's most recent report filed with the
Securities and Exchange Commission. All forward-looking statements are
qualified in their entirety by this cautionary statement. DivX is providing
this information as of the date of this release and does not undertake any
obligation to update any forward-looking statements contained in this release
as a result of new information, future events or otherwise.
SOURCE: DivX, Inc.
CONTACT: Media, Jennifer Baumgartner,
+1-503-901-5371,
jbaumgartner@divxcorp.com, or
Investors, Karen Fisher,
+1-858-882-6415,
kfisher@divxcorp.com, both of DivX, Inc.
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