Andre Yoskowitz
26 Dec 2010 19:54
Rovi has announced its acquisition of Sonic Solutions this week, taking over the company known for its DVD editing and burning software, digital movie downloads and for DivX, the digital video software and codec.
The company will pay $720 million in cash and stock just six months after Sonic purchased DivX for $323 million.
Rovi says the merger will help "Hollywood studio clients sell content in a fast-growing digital entertainment market."
Because the content will be more centralized, consumers may be willing to pay a premium for it, adds the company.
The deal should close in the first half of 2011 and consolidation should help save them $15 million in expenses per year.