Sonic to Acquire CinemaNow
NOVATO, Calif., Nov. 19 /PRNewswire-FirstCall/ -- Sonic Solutions(R)(Nasdaq: SNIC), the leader in digital media software, today announced that ithas entered into a definitive agreement to acquire CinemaNow, a privately heldonline entertainment provider based in Marina Del Rey, California. CinemaNowis at the forefront of digital video distribution, offering over 6,000high-quality Hollywood movies, TV shows and music videos to users acrossmultiple platforms. The company has relationships with more than 250 contentproviders, including all major Hollywood studios, and supplies premiumentertainment services to a host of PC and consumer electronics devicemanufacturers such as Dell, HP, Samsung, TiVo, DivX, and ARCHOS.
"With broadband-connected consumer electronics hitting the market in evergreater numbers, there is a growing need for a service that gives consumersone-click access to premium entertainment on any device in the digital home,"said David Cook, president and COO, CinemaNow. "The combination of CinemaNow'scontent and embedded device strategy with Sonic's technical prowess and broadPC and CE distribution promises to fulfill CinemaNow's original mission --giving consumers easy access to the best of Hollywood from their PCs, TVs,mobile phones, or anywhere in their digital ecosystems."
"The digital delivery of premium content is at a tipping point," said DaveHabiger, president and CEO, Sonic Solutions. "By providing consumers and OEMsuser-friendly content services and software that works across multipleplatforms, we will make it possible for any device or PC manufacturer to addan online movie store of Hollywood hits to its products. With CinemaNow, welook forward to expanding and deepening our relationship with OEM and retailpartners as well as with the millions of consumers that we touch today throughour Roxio(R)-branded digital media applications and online services."
As the leading provider of professional software systems used in thecreation of Hollywood titles on DVD and Blu-ray Disc, Sonic has deep ties tothe entertainment industry. Sonic's technology solutions and Roxioapplications power the management and playback of Hollywood content on PCs andCE devices ranging from set-top DVD players and game consoles, to in-carentertainment systems and portable media players. CinemaNow's vast contentlibraries and innovative delivery systems will enable Sonic's productportfolio and technology expertise to span the entire premium entertainmentsupply chain -- from creation through distribution and consumption.
The acquisition is expected to close shortly.
Conference Call Details
Sonic will conduct an investor conference call at 1:30 p.m. PST, or4:30 p.m. EST, today to discuss details of the transaction. Investors areinvited to listen to Sonic's conference call on the 'investor relations -webcast' section of Sonic's website at www.sonic.com or by dialing877-591-4959 (for domestic callers) or 719-325-4885 (for internationalcallers). A replay of the web cast will be available shortly after theconclusion of the call. An audio replay of the conference call will also bemade available shortly after the conclusion of the call. The audio replaywill remain available until midnight PST November 22, 2008, and can beaccessed by dialing 888-203-1112 (for domestic callers) or 719-457-0820 (forinternational callers) and entering the passcode 9174829.
About CinemaNow
CinemaNow, Inc. (http://www.cinemanow.com) is an innovator in digitalentertainment technology, delivering high-quality Hollywood movies, TV showsand music videos to users across multiple platforms. Founded in 1999,CinemaNow has partnered with some of the biggest brands in consumerelectronics and digital entertainment including ARCHOS, EchoStarCommunications, Hewlett-Packard, Macrovision, Microsoft, Samsung, andTechnicolor to deliver thousands of video titles directly to consumers.CinemaNow works with more than 250 licensors including 20th Century Fox,Disney, EMI, HDNet, IFC, Lionsgate, MGM, Miramax, NBC Universal, ParamountPictures, Sony, Sundance Channel, Vivendi Entertainment and Warner Bros.
About Sonic Solutions
Sonic Solutions (Nasdaq: SNIC; http://www.sonic.com) enables the creation,management, and enjoyment of digital media content through its Hollywood toHome(TM) products, services, and technologies. Sonic's products range from theadvanced authoring systems used to produce Hollywood DVD and Blu-ray Disctitles to the award-winning Roxio-branded photo, video, music, anddigital-media management applications and services. Sonic's patentedtechnologies and AuthorScript(R) media engine are relied upon by leadingtechnology firms to define rich media experiences on a wide array of consumerelectronics, mobile devices, set-top players, retail kiosks, and PCs. Alwaysan innovator, Sonic has taken a leading role in helping professional andconsumer markets make the successful transition to the new high-definitionmedia formats and, through the Qflix(TM) platform, Sonic is defining newmodels for the digital distribution of Hollywood entertainment. SonicSolutions is headquartered in Marin County, California.
Forward Looking Statements
This press release and the conference call to discuss the CinemaNowacquisition contain forward-looking statements within the meaning of Section27A of the Securities Act of 1933, as amended, and Section 21E of theSecurities Exchange Act of 1934, as amended that are made as of the date ofthis press release based upon our current expectations. All statements, otherthan statements of historical fact, regarding our strategy, future operations,financial position, estimated revenue, projected costs, projected savings,prospects, plans, opportunities, and objectives constitute "forward-lookingstatements." The words "may," "will," "expect," "intend," "plan,""anticipate," "believe," "estimate," "potential" or "continue" and similartypes of expressions identify such statements, although not all forward-looking statements contain these identifying words. Such forward-lookingstatements include, but are not limited to expectations regarding the expectedclosing date of the CinemaNow acquisition and the distribution and the marketacceptance of CinemaNow technologies and services. These forward-lookingstatements involve known and unknown risks, uncertainties and other factorsthat may cause the actual results to differ materially from any futureresults, performance or achievements expressed or implied by suchforward-looking statements. Important factors that could cause suchdifferences include, but are not limited to: risks related to the acquisitionand the integration of CinemaNow's assets, personnel and systems; the negativeimpact of current macroeconomic conditions on consumers and associated impacton their ability and inclination to spend on leisure and entertainment relatedactivities and related software and electronics; the timely introduction andacceptance of new products and services, including but not limited to the rateof acceptance of Sonic's Qflix initiative, online services and high-definitionproducts by content owners, original equipment manufacturers and consumers;competing products and services that may, now or in the future, be availableto consumers; pricing pressures associated with products or services offeredby current or future competitors; Sonic's ability to maintain sufficientliquidity and continue to fund its capital needs; the costs associated withnew product and service introductions and the possible adverse effects ongross margins; fluctuations in demand for Sonic products and services;unforeseen increases in operating expenses; loss of significant customers,major distributors or key suppliers; and risks associated with internationaloperations. Additional discussion of these and other risks, uncertainties andfactors affecting Sonic's business, prospects and future results is containedin the company's periodic filings with the Securities and Exchange Commission.Sonic does not undertake to update any forward-looking statements unlessotherwise required by law.
Sonic, the Sonic logo, Sonic Solutions, AuthorScript, Hollywood to Home,Qflix, and Roxio are trademarks or registered trademarks of Sonic Solutions inthe United States and/or other countries. All other company or product namesare trademarks of their respective owners and, in some cases, are used underlicense.
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