Sony Pictures
Digital to Buy Desktop Software Assets of Sonic Foundry
Friday, May 02, 2003
CULVER CITY, Calif. & MADISON,
Wis. — Sony Pictures Digital and Sonic Foundry®, Inc. (NASDAQ:
SOFO) announced today Sony Pictures Digital has struck an agreement
to purchase all of Sonic Foundry's desktop software products and
related assets for $18 million cash and assumption of certain trade
payables, accrued liabilities and capital leases associated with
the desktop software business.
The acquisition of Sonic Foundry's desktop software follows the recent retail
release of Sony Pictures Digital's Screenblast® Movie Studio™ and
Screenblast® Music Studio™ video and music-mixing applications
created in conjunction with Sonic Foundry's award-winning software team.
Sale of the desktop software assets includes Sonic Foundry's popular, industry-leading
ACID®, Sound Forge® and Vegas® series of software products,
as well as other related assets. Sony anticipates maintaining the group's
Madison, Wis. base. The Board of Directors of Sonic Foundry has approved
the transaction and certain shareholders have agreed to vote their shares
in favor of the sale. Approval of the agreement may be subject to Sonic
Foundry shareholder approval and other various conditions (see details
below).
" During the past three years, we have come to recognize and admire Sonic
Foundry's engineering expertise and value their software applications. We are
excited to integrate this world-class team and their products into our ongoing
efforts to produce and deliver the next generation of consumer entertainment
services," said Patrick Kennedy, executive vice president of Sony Pictures
Digital.
" The sale of our music and video digital software products is a key milestone
in Sonic Foundry's history," said Rimas Buinevicius, chairman and CEO of
Sonic Foundry. "We couldn't pick a better partner than Sony Pictures Digital
to carry on the same passion and success we've achieved over the past 12 years," he
said. "Consummation of this agreement will give us the cash we need to pay
our debt and allow us to focus our attention on writing the next successful chapter
of Sonic Foundry's story - rich media - and building upon the early success we've
already achieved with our Web presentation solution, Media Site Live™."
Sony Pictures Digital oversees the digital production and online assets of
Sony Pictures Entertainment and leads its efforts to develop and provide
new forms of online content, games, interactive programming, open-access
video-on-demand and wireless entertainment. Screenblast, which first debuted
in September 2001, gives the consumer the ability to create, enhance and
share their digital videos, music and photos with a combination of a powerful
software suite and an easy-to-use online service for sharing and personalizing
consumers' media. Screenblast Movie Studio and Screenblast Music Studio
software have been available through retail outlets since October 2002.
Sonic Foundry will file a proxy statement shortly with the SEC and mail to
investors of record as of April 25 detailing the proposed transaction up
for possible approval at its June meeting in Madison, Wis. The company
expects to close the transaction within a few days following the shareholder
meeting.
The signed agreement marks a major milestone in Sonic Foundry's longer-term
strategy to concentrate on markets where rich media solutions are being
embraced. The company will use the proceeds to pay off debt and fund its
operations for its Web-based rich media communications product, MediaSite
Live and related offerings.
About Sony Pictures
Digital
Sony Pictures Digital oversees the digital production and online assets of
Sony Pictures Entertainment (SPE) and consists of four key operating business
units: Sony Pictures Animation, Sony Pictures Imageworks, Sony Online Entertainment
and Sony Pictures Digital Networks which includes SoapCity, Screenblast, Sony
Pictures mobile and wireless services, the studio's online promotional arm
SPiN, and the UK interactive television service GoPlayTV. By making information
and entertainment available anywhere, anytime on any connected device, Sony
Pictures Digital is exploring new technology that links hardware with software
in ways that advance the current boundaries of the entertainment landscape.
For more information, please visit www.sonypictures.com.
About Sonic Foundry®,
Inc.
Founded in 1991, Sonic Foundry (NASDAQ:SOFO) is a leading provider of desktop
and enterprise digital media software solutions. Its complete offering of media
tools, systems and services provides a single source for creating, managing,
analyzing and enhancing media for government, business, education and entertainment.
Sonic Foundry is based in Madison, Wis., with offices in Santa Monica, Toronto
and Pittsburgh. For more information about Sonic Foundry, visit the company's
Web site at www.sonicfoundry.com.
Certain statements contained in this news release regarding matters that are
not historical facts may be forward-looking statements. Because such forward-looking
statements include risks and uncertainties, actual results may differ materially
from those expressed in or implied by such forward-looking statements.
Factors that could cause actual results to differ materially include, but
are not limited to, uncertainties pertaining to continued market acceptance
for Sonic Foundry's products, its ability to succeed in capturing significant
revenues from media services and/or systems, the effect of new competitors
in its market, integration of acquired business and other risk factors
identified from time to time in its filings with the Securities and Exchange
Commission.
Sonic
Foundry Web Site
Press Contacts:
Catapult PR-IR
Terri Douglas
303.581.7760, ext. 18
tdouglas@catapultpr-ir.com
Strategic Growth
International, Inc.
Richard Cooper
516.829.7111
sgi@netmonger.net
Sony Pictures Digital
Don Levy
310.840.7315
dlevy@sonypictures.com |
