|SONICblue Announces Plan to Acquire ReplayTV|
|Home Theater News Industry-Trade News|
|Written by Scott Selter|
|Friday, 02 February 2001|
SONICblue Announces Plan to Acquire ReplayTV.
SONICblue(TM) Incorporated, a leader in the converging Internet, digital media and consumer device markets, just announced it has signed a letter of intent to acquire ReplayTV, Inc., the industry-leading licensor of technology for networked entertainment products, serving businesses that include consumer electronics manufacturers, personal computer manufacturers, set-top box manufacturers and cable, satellite and terrestrial operators.
Under the terms of the letter of intent, SONICblue will issue an aggregate of 16 million shares of common stock and options and warrants to purchase shares of SONICblue common stock in exchange for all of ReplayTV's outstanding equity interests, and ReplayTV will become a wholly owned subsidiary of SONICblue. Consummation of the transaction is subject to the negotiation of a definitive agreement and to ReplayTV stockholder approval, and the satisfaction of other customary closing conditions. SONICblue intends to account for the transaction as a purchase.
"We are enthusiastic about the synergies, growth prospects and opportunities that have become available to us through this acquisition," said Ken Potashner, CEO and Chairman, SONICblue. "We have established the leadership position in digital audio with our Rio brand. Now with the addition of ReplayTV we are well positioned to take the lead in networked home entertainment. We also plan to partner with the leading content distributors to provide consumers with the best overall digital experience."
"ReplayTV's cutting-edge product line and strong presence in the personal TV space is a natural fit for SONICblue's vision for tomorrow's digital home," said Anthony Wood, CEO, ReplayTV. "We believe that integrating our two companies' technologies will allow us to deliver the next generation of digital entertainment products to consumers."