Acquisition to Serve as Foundation of New Sonic Premium Content Group NOVATO, Calif., Nov. 19
NOVATO, Calif., Nov. 19 /PRNewswire-FirstCall/ -- Sonic Solutions(R)
(Nasdaq: SNIC), the leader in digital media software, today announced that it
has entered into a definitive agreement to acquire CinemaNow, a privately held
online entertainment provider based in Marina Del Rey, California. CinemaNow
is at the forefront of digital video distribution, offering over 6,000
high-quality Hollywood movies, TV shows and music videos to users across
multiple platforms. The company has relationships with more than 250 content
providers, including all major Hollywood studios, and supplies premium
entertainment services to a host of PC and consumer electronics device
manufacturers such as Dell, HP, Samsung, TiVo, DivX, and ARCHOS.
Sonic(R) and CinemaNow recently announced a collaboration to enable the
download and burn of DVD movies by integrating CinemaNow's content delivery
system into new Qflix(TM) DVD drives. Qflix drives have recently become
available from a number of companies including Dell, Pioneer and Plextor.
CinemaNow will combine with Sonic's Qflix team to form a new Premium Content
Group under the direction of Mark Ely, Sonic's EVP of Strategy. The group will
focus on increasing the placement of CinemaNow's storefront on PCs and
consumer electronics devices, and expanding the adoption of the Qflix
technology platform.
"With broadband-connected consumer electronics hitting the market in ever
greater numbers, there is a growing need for a service that gives consumers
one-click access to premium entertainment on any device in the digital home,"
said David Cook, president and COO, CinemaNow. "The combination of CinemaNow's
content and embedded device strategy with Sonic's technical prowess and broad
PC 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 Dave
Habiger, president and CEO, Sonic Solutions. "By providing consumers and OEMs
user-friendly content services and software that works across multiple
platforms, we will make it possible for any device or PC manufacturer to add
an online movie store of Hollywood hits to its products. With CinemaNow, we
look forward to expanding and deepening our relationship with OEM and retail
partners as well as with the millions of consumers that we touch today through
our Roxio(R)-branded digital media applications and online services."
As the leading provider of professional software systems used in the
creation of Hollywood titles on DVD and Blu-ray Disc, Sonic has deep ties to
the entertainment industry. Sonic's technology solutions and Roxio
applications power the management and playback of Hollywood content on PCs and
CE devices ranging from set-top DVD players and game consoles, to in-car
entertainment systems and portable media players. CinemaNow's vast content
libraries and innovative delivery systems will enable Sonic's product
portfolio and technology expertise to span the entire premium entertainment
supply 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, or
4:30 p.m. EST, today to discuss details of the transaction. Investors are
invited to listen to Sonic's conference call on the 'investor relations -
webcast' section of Sonic's website at www.sonic.com or by dialing
877-591-4959 (for domestic callers) or 719-325-4885 (for international
callers). A replay of the web cast will be available shortly after the
conclusion of the call. An audio replay of the conference call will also be
made available shortly after the conclusion of the call. The audio replay
will remain available until midnight PST November 22, 2008, and can be
accessed by dialing 888-203-1112 (for domestic callers) or 719-457-0820 (for
international callers) and entering the passcode 9174829.
About CinemaNow
CinemaNow, Inc. (http://www.cinemanow.com) is an innovator in digital
entertainment technology, delivering high-quality Hollywood movies, TV shows
and music videos to users across multiple platforms. Founded in 1999,
CinemaNow has partnered with some of the biggest brands in consumer
electronics and digital entertainment including ARCHOS, EchoStar
Communications, Hewlett-Packard, Macrovision, Microsoft, Samsung, and
Technicolor 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, Paramount
Pictures, 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 to
Home(TM) products, services, and technologies. Sonic's products range from the
advanced authoring systems used to produce Hollywood DVD and Blu-ray Disc
titles to the award-winning Roxio-branded photo, video, music, and
digital-media management applications and services. Sonic's patented
technologies and AuthorScript(R) media engine are relied upon by leading
technology firms to define rich media experiences on a wide array of consumer
electronics, mobile devices, set-top players, retail kiosks, and PCs. Always
an innovator, Sonic has taken a leading role in helping professional and
consumer markets make the successful transition to the new high-definition
media formats and, through the Qflix(TM) platform, Sonic is defining new
models for the digital distribution of Hollywood entertainment. Sonic
Solutions is headquartered in Marin County, California.
Forward Looking Statements
This press release and the conference call to discuss the CinemaNow
acquisition contain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended that are made as of the date of
this press release based upon our current expectations. All statements, other
than statements of historical fact, regarding our strategy, future operations,
financial position, estimated revenue, projected costs, projected savings,
prospects, plans, opportunities, and objectives constitute "forward-looking
statements." The words "may," "will," "expect," "intend," "plan,"
"anticipate," "believe," "estimate," "potential" or "continue" and similar
types of expressions identify such statements, although not all forward-
looking statements contain these identifying words. Such forward-looking
statements include, but are not limited to expectations regarding the expected
closing date of the CinemaNow acquisition and the distribution and the market
acceptance of CinemaNow technologies and services. These forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause the actual results to differ materially from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Important factors that could cause such
differences include, but are not limited to: risks related to the acquisition
and the integration of CinemaNow's assets, personnel and systems; the negative
impact of current macroeconomic conditions on consumers and associated impact
on their ability and inclination to spend on leisure and entertainment related
activities and related software and electronics; the timely introduction and
acceptance of new products and services, including but not limited to the rate
of acceptance of Sonic's Qflix initiative, online services and high-definition
products by content owners, original equipment manufacturers and consumers;
competing products and services that may, now or in the future, be available
to consumers; pricing pressures associated with products or services offered
by current or future competitors; Sonic's ability to maintain sufficient
liquidity and continue to fund its capital needs; the costs associated with
new product and service introductions and the possible adverse effects on
gross 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 international
operations. Additional discussion of these and other risks, uncertainties and
factors affecting Sonic's business, prospects and future results is contained
in the company's periodic filings with the Securities and Exchange Commission.
Sonic does not undertake to update any forward-looking statements unless
otherwise required by law.
Sonic, the Sonic logo, Sonic Solutions, AuthorScript, Hollywood to Home,
Qflix, and Roxio are trademarks or registered trademarks of Sonic Solutions in
the United States and/or other countries. All other company or product names
are trademarks of their respective owners and, in some cases, are used under
license.
SOURCE Sonic Solutions
