Sonic Foundry Sells Entertainment BusinessSonic Foundry has closed on the sale of assets comprising its entertainment industry-based business to Deluxe Media Services Inc. for approximately $5.6 5/22/2003 8:00 AM Eastern
Sonic Foundry has closed on the sale of assets comprising its entertainment industry-based business to Deluxe Media Services Inc. for approximately $5.6 million cash, including an estimate of net working capital.
Sonic Foundry's entertainment business include its digital media conversion, encoding and distribution products and services for companies in the television, motion picture and entertainment industry.
With the money Sonic Foundry will receive from its deal with Sony Pictures Digital ("Sony Buys Sonic Foundry's Desktop Software Assets," mixonline.com/ar/audio_mix_news_may/index.htm), the company will use the approximate $24 million to pay off debt and fund the company's foward operations. All of the approximately 80 Sonic Foundry employees—currently working at the company's Toronto- and Los Angeles-based operations—will be impacted by the sale, although the majority of them are expected to transition to Deluxe.
According to Sonic Foundry chairman and CEO Rimas Buinevicius, "The company's focus has been evolving to rich-media content creation, management and distribution over the Internet with Web streaming and distribution solutions, sucha s our Mediasite Live product. Mediasite Live is a Web presentation system Sonic Foundry introduced in 2002 that is used for a wide variety of enterprise communication applications, such as distance learning, corporate training and Webcasting.
"We timed our transition to focus exclusively on the rich-media enterprise market as we began to see greater applications for our advanced technologies," Buinevicius continued. "Our proprietary offerings and expertise in the areas of indexing, navigating and interpreting rich-media content are the principal foundations that define the rich-media database of the future. Products help create the content for these databases, while our follow-up offerings will focus on enhancing and improving the workflow consumption and interpretation of rich media."
For more, visit Sonic Foundry at www.sonicfoundry.com.