updated 09:20 am EST, Thu December 23, 2010
Rovi buys Sonic for 720 million in digital push
Rovi Corp today confirmed that it was buying Sonic for $720 million in a blend of both cash and stock. The acquisition was characterized as a push beyond TV set-top box guides into digital and centered around both Sonic's RoxioNow video store platform as well as its buyout of DivX from June. The move would help attract Hollywood studios and speed up the adoption of paid online content.
The deal could see DivX's namesake video format used much more widely, including on DVRs and other set-tops that normally have little Internet video support. It may also have an indirect effect on Apple. The Apple TV maker recently struck a long-term deal with Rovi for what was at first thought to be a direct tie-in to the new Apple TV but has since become unclear.
Apple has never officially supported DivX and is unlikely to license RoxioNow given iTunes, but the merger today might give it access to Sonic technology over the course of multiple years.