SONIC Acquires InterActual WEB DVD Enabler!
This combination makes perfect sense....you'll see. Applications such as On line learning become a staple with this type of connectivity DVDR is now able to be On Line live.
Sonic to Acquire InterActual Technologies; Combined Company Offers End-to-End Solutions for Web-Connected DVD Creation and Playback
NOVATO, Calif., Feb 2, 2004 (BUSINESS WIRE) -- Sonic Solutions (NASDAQ: SNIC)
today announced that it has entered into a definitive agreement to acquire
InterActual Technologies, the leading provider of solutions for integrating DVD
content with the Internet and additional on-disc bonus features for $8.8 million
in cash. With the acquisition of InterActual, Sonic will further strengthen its
leadership position with the Hollywood-based DVD production community and
broaden its professional DVD authoring product line with advanced web-linking
technologies. In addition, InterActual's web-enabled DVD playback capabilities
will be integrated into Sonic's consumer DVD software applications as well as
its AuthorScript(TM) DVD creation engine, enabling Sonic's bundle OEMs and
technology licensing partners to deliver the best possible connected-DVD
experience to their customers.
As a result of the acquisition, Sonic will acquire InterActual's eb-enabling
technologies including its portfolio of 17 patents and patent applications, the
InterActual Player, and all engineering and service operations. Key InterActual
executives, including Todd Collart, InterActual's president, and almost all
members of staff will join Sonic's Professional Products or Advanced
Technologies business units. Sonic plans to continue to market the InterActual
brand and spotlight logo as part of the Sonic product family. Sonic also plans
to continue InterActual's cross-platform licensing strategy to enable
third-party DVD players and authoring solutions to play and access InterActual
bonus content.
InterActual is recognized by Hollywood's top movie studios as the de facto
standard for seamlessly connecting DVD-Video content with both web- and high-end
ROM-based bonus features such as downloadable commentaries, scene medleys, and
image galleries accessible with a DVD-enabled PC. The InterActual Player can be
found on hundreds of millions of DVDs, including such blockbuster titles as New
Line Cinema's "Lord of the Rings - The Two Towers," Disney's "Pirates of the
Caribbean," Warner Bros.' "The Matrix Reloaded" and "Harry Potter and The
Chamber of Secrets," Universal's "Seabiscuit," and Columbia TriStar's
"Spider-Man." In 2003 over 70% of the top 25 selling DVDs were
InterActual-enabled.
"As the leading provider of DVD creation solutions to Hollywood as well as the
leading supplier of DVD and CD creation software on the PC, Sonic is the perfect
partner with whom to expand InterActual's technology and enhance our service
offerings to the content community," said Todd Collart, president of InterActual
Technologies. "Joining forces with Sonic greatly strengthens our ability to
deliver cutting-edge Internet-connected technology across a broad-range of
platforms, especially for our studio partners."
"The PC DVD-ROM market segment represents over 44% of U.S.-based DVD viewing
households, and this segment is growing dramatically," said Bob Doris, president
and CEO of Sonic Solutions. "InterActual's industry-leading technology and
service operations targeted at highly connected consumers allow us to enhance
the world's best DVD creation technology to our professional authoring customers
while enabling our PC and license partners to offer internet-connected DVD
playback solutions that deliver a deeply enriched DVD experience for their
customers."
The acquisition is subject to customary closing conditions, including approval
by InterActual shareholders. Sonic currently expects to close the acquisition in
mid- to late February 2004. Sonic management plans to provide more information
regarding the financial and operational impact of the acquisition during the
Company's 3rd Quarter Fiscal 2004 Financial Results Conference call scheduled
for 1:30 PM PST (4:30 PM EST) on Tuesday, February 3, 2004.
About InterActual
InterActual Technologies, Inc., (http://www.interactual.com) is the leading
provider of software and services that enhance DVD movie viewing on computers
and next-generation consumer electronics devices. InterActual offers an
exclusive line of platform-based solutions for integrating DVD content with the
Internet and additional on-disc bonus features. The InterActual platform enables
DVD producers to augment the original feature program with compelling and
relevant features and activities. InterActual has become the de facto standard
for DVD-ROM content creation and integration, shipping on over 1000 major DVD
titles representing hundreds of millions of discs. Incorporated in 1995,
InterActual is a privately-held company headquartered in San Jose, California,
with a satellite team in Los Angeles, California.
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