SONICblue Completes Acquisition of ReplayTV; Company to Expand into Digital Video Products, Content and Service Offerings
SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 2, 2001--SONICblue(TM) Incorporated (NASDAQ:SBLU) today announced that it has completed its acquisition of ReplayTV, a creator of personal television technologies and services. The addition of ReplayTV bolsters SONICblue's presence in the burgeoning digital home-entertainment market by expanding its intellectual property portfolio with key software and hardware design technologies for the personal television market.
"ReplayTV is a leader in the rapidly growing digital video recorder and service sector," said Ken Potashner, CEO and chairman, SONICblue. "We believe that ReplayTV's technologies and expertise combined with our existing products and capabilities will position us to bring forth revolutionary products and services to the consumer. We are committed to building the connected home of the future, where digital audio and video entertainment can be easily enjoyed in any room at any time."
The Company said it intends to deploy ReplayTV's technology through licensing arrangements similar to the recently announced deal with Motorola for their forthcoming DCT5000 cable box and through a digital video server it plans to introduce in the fall. John J. Todd, chief financial officer and chief operating officer, SONICblue, indicated that SONICblue expects ReplayTV to show significant growth in the foreseeable future.
Under the terms of the agreement, SONICblue has issued an aggregate of 15.5 million shares of SONICblue common stock and options and warrants to purchase shares of SONICblue common stock in exchange for all of ReplayTV's outstanding equity interests. ReplayTV has become a wholly owned subsidiary of SONICblue. The acquisition is intended to qualify as a tax-free reorganization and will be accounted for as a purchase. The transaction passed regulatory and ReplayTV stockholder approval and satisfied other customary closing conditions.
"I believe that prominent brands like Rio and ReplayTV and the innovative product offering from frontpath, give SONICblue a clear lead in the integration of Internet-driven consumer products for the home," commented Anthony Wood, CEO, ReplayTV. "We are delighted to be part of the SONICblue family and look forward to offering consumers new products and services that utilize the best elements of these revolutionary technologies."
About ReplayTV Inc. (www.replaytv.com)
ReplayTV Inc., a wholly owned subsidiary of SONICblue Incorporated, is a leading provider of turnkey software and services that enable platform partners and network operators to deliver revenue-generating personal television and digital video recording services. Mountain View, Calif.-based ReplayTV is the creator of personal television and provides software technologies and service solutions to manufacturers of set-top boxes, DVRs, home-media servers and networked-entertainment appliances.
About SONICblue Incorporated (www.SONICblue.com)
SONICblue is a leader in the converging Internet, digital media and consumer device markets. Working with partners that include some of the biggest brands in consumer electronics, SONICblue creates and markets products that let consumers enjoy all the benefits of a digital home and connected lifestyle. SONICblue holds significant financial assets, global marketing capabilities and a focused technology portfolio that includes Rio(R) digital audio players, frontpath(TM) Information Appliances, ReplayTV(R), a licensor of technology for networked entertainment products and Sensory Science digital audio and video entertainment products.
Note to Editors: Except for the historical information contained herein, the matters set forth in this press release, including statements as to the expected benefits of the combination of the two companies and integration of their technologies, the expected expansion, timing and deployment of product and service offerings, including the introduction of a digital video server, the expected growth of ReplayTV and the intention that the acquisition qualify as a tax-free reorganization and be accounted for as a purchase, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, but not limited to the ability to integrate ReplayTV and its technology with the Company following the acquisition, the Company's ability to successfully develop, manufacture and bring to market in a timely manner the digital video server, the Company's ability to obtain new customers and strategic partners for ReplayTV products and intellectual property, the impact of competitive products and pricing and of alternative technological advances, and other risks detailed from time to time in the SEC reports of SONICblue Incorporated (formerly S3 Incorporated), including its quarterly report on Form 10-Q for the quarter ended March 31, 2001. These forward-looking statements speak only as of the date hereof. SONICblue disclaims any intention or obligation to update or revise any forward-looking statements.
SONICblue, Diamond, frontpath and HomeFree are trademarks of SONICblue Incorporated. Rio is a registered trademark of RioPort, Inc. and is used by SONICblue under licenses from RioPort, Inc. Other marks referenced herein are the property of their respective owners. ReplayTV is a registered trademark of ReplayTV, Inc.
CONTACT: SONICblue
Tracy Perry, 408-588-8086 (IR)
ir@SONICblue.com
or
The Bohle Company
Sue Bohle, 310/785-0515 (Press)
sue@bohle.com |
