Anyone whose been ticked off with the manipulation by well resourced short funds, here's your opportunity for a little payback. Sonic Solution (SNIC) is approximately 13MM shares short. It closed at $11.20 today. After hours, Rovio announced it was acquiring SNIC for $14.17 a share. It is time those that have done it to us feel what its like to be on the receiving end. This will gap us tomorrow, but candidly, I don't know how people will cover. I have no intention of selling anytime soon. I think the Rovio acquisition is strategically brilliant, so I will likely hold and do the exchange at .25 Rovio shares...
SANTA CLARA, Calif. and NOVATO, Calif., Dec. 22, 2010 (GLOBE NEWSWIRE) -- Rovi Corporation (Nasdaq:ROVI) and Sonic Solutions (Nasdaq:SNIC) today announced that the two companies have signed a definitive agreement for Rovi to acquire Sonic in a stock and cash transaction. The enterprise value of the transaction is approximately $720 million and the per share value of Sonic common stock at signing of the agreement is $14.17, a 38.2 percent premium to Sonic's 30 day average per share closing price as of December 21, 2010. The acquisition is structured as an exchange offer for all of the outstanding shares of Sonic common stock, to be followed by a merger.
Rovi, a provider of next generation guidance solutions including TotalGuide, discovery, metadata, advertising and networking technologies and Sonic, a provider of digital video processing, playback and distribution technologies, both leaders in the digital entertainment industry, together will bring an end-to-end solution that enables integration across the ecosystem. The acquisition of Sonic will enable Rovi to broaden its solutions to content owners, device makers, retailers and operators.
Sonic has licensed its industry leading cloud-based digital media delivery infrastructure known as RoxioNow, to major retailers, movie studios and CE manufacturers. RoxioNow incorporates a catalog of over 10,000 movies and TV programs, which are accessible through connected CE devices such as digital televisions, Blu-ray players and mobile phones. The RoxioNow technology is expected to be on over 30 million connected devices by June 2011. Sonic's DivX offering is distributed in over 350 million CE devices. The DivX player software has been downloaded over 100 million times per year and 500 million times cumulatively, and has had over 2.5 billion launches since 2009. Sonic's broad offerings coupled with Rovi's guide software and metadata will generate an expanded solution and a richer user experience. With a footprint spanning hundreds of millions of devices and households, Rovi believes this will expand its advertising distribution opportunity.
The combined company will be able to power the next generation of digital entertainment offerings with content discovery, delivery, and enhanced interactivity capabilities that support advertising and drive consumer engagement. Integration between RoxioNow and TotalGuide has already occurred as part of the TotalGuide general availability release – RoxioNow's retail customers are supported through TotalGuide. In the future, Rovi expects to power RoxioNow's user experience with the same web services that power TotalGuide. Rovi believes this integration will result in accelerated uptake of premium content.
Nope. SNIC is 13MM shares short and just got a buyout offer for $14.17 or ~.25 Rovio shares per SNIC share.
Having said that, Rovio + SNIC is a very serious competitor in the digitial distribution space. DYODD on Rovio, but it is a very powerful combination that will enable an entire network of retailers to have superior user experience and offering to consumers with targeted marketing to improve the economics...
Should push NFLX down. NFLX shareholders will start to realize the competition is going to be VERY real.