Streaming media tool provider Media 100
Inc. Tuesday acquired Digital
Origin Inc. for approximately $90 million in stock.
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.
Digital Origin created EditDV and IntroDV, which provide Web site
designers, DVD authors, multimedia professionals, and consumers the ability
to create video programs — complete with titles, effects and audio —
easily and at low-cost on a standard PC or laptop.
“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.