MUMBAI: DivX, Inc. has acquired AnySource Media LLC, creator of 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.
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.
"Internet TV will transform the landscape for media distribution and advertising as we know it. 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," said DivX Inc CEO Kevin Hell.
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 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. 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," said AnySource Media co-founder and CEO Mike Harris, who has joined the DivX management team reporting to Hell.
"The acquisition of AnySource’s technology platform and the addition of their talented team advance our development schedule by at least one year. 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," said DivX Inc executive vice president and CFO Dan Halvorson.
