Rovi Corp is purchasing Sonic Solutions for $720 million in cash and stock. By acquiring the company, which owns the digital video player software DivX, Rovi Corp hopes to become more known in the digital entertainment industry. The deal comes only shortly after Sonic purchased DivX Inc. in June for $323 million. That exchange supported Sonic’s internet-based video delivery products.
The two companies believe that the merge will better enable Hollywood studio clients to sell content in the rapidly-growing digital entertainment industry. Consumers will be able to sort through the content and locate their preference effortlessly. The better service may make them more willing to pay higher prices.