Media 100 Snags Digital Origin
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Media 100 (MDEA) will issue 0.5347 shares of common stock for each share of Digital Origin common stock.
Digital Origin creates digital video editing and effects applications designed to support the new DV (digital video) camcorders, which rapidly are being adopted as the standard for acquiring video for Internet applications. The combined company plans to target desktops with low-cost applications that allow personal computer users to capture, edit, and stream video using a single application.
The companies also inked a four-year OEM development and license agreement in which Media 100 will use the video editing and effects software of Digital Origin in exchange for certain royalties. The firms plan to integrate Digital Origin's software with Media 100's streaming media software, Media Cleaner, to offer streaming tools to millions of Internet desktops.
"The merger with Digital Origin gives the combined company a strategic technology and product portfolio unmatched in the streaming media tools category," said John Molinari, president and chief executive officer of Media 100. "In combining Digital Origin's product and technology portfolio with Media 100's, we will be the first company to offer fully integrated Internet video production and streaming tools to all segments of the market."
In late afternoon trading, Digital Origin (DODV) was up 43 percent on the announcement, selling for 12 3/8, an increase of $3.75.