Is this the year consumers adopt 4K streaming devices en masse? NeuLion, a U.S.-based digital video service provider, strongly believes so.
On Monday it was announced NeuLion will acquire video tech company DivX in a deal worth approximately $62.5 million ($37.5 million of that is in shares of NeuLion common stock, and a $25 million 2-year convertible note). DivX, which licences software to content rights holders and consumer electronics brands, has recently been promoting the adoption of 4K streaming. And its 4K tech appealed to NeuLion, according to a statement.
NeuLion provides services for media companies’ OTT and TV Everywhere platforms, and its clients include the NFL, NHL, NBA, UFC, Rogers and CCTV. “Now, we are extending our franchise and bolstering our capabilities with our acquisition of DivX’s entertainment and consumer electronics customers, advanced 4K video enabling technology products and expansive geographic reach,” said Nancy Li, chief executive officer of NeuLion.
The deal is expected to close over the next few months.