|[3:20 PM] The Desktop Video Industry Takes Another Step Forward
Media 100 continues its shopping spree with the announcement of a new acquisition. The company will acquire Digital Origin, Inc., a digital video editing developer. Media 100 is a maker of digital video boards and other digital video products. According to Media 100:
Media 100 Inc., the pioneer of streaming media production tools, today announced it has entered into a definitive agreement to acquire Digital Origin Inc. of Mountain View, California. Digital Origin is the leading developer of digital video editing and effects software applications designed to support the new low-cost, high-quality DV (digital video) camcorders, which rapidly are being adopted as the standard for acquiring video for Internet applications. The combined company will target Internet desktops with low-cost applications that allow personal computer users to capture, edit, and stream video on the Internet using a single, integrated, and easy-to-use application. Digital Origin is the developer of the award-winning applications 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 will be completed as a pooling of interests for accounting purposes, and a tax-free transaction. Under the agreement, the Company will issue 0.5347 shares of common stock for each share of Digital Origin common stock. The transaction is subject to the approval of the stockholders of Media 100 and Digital Origin and other customary closing conditions. The merger is expected to be complete in 90 to 120 days.
In addition, Media 100 and Digital Origin announced they have entered into a non-exclusive, four-year OEM development and license agreement, pursuant to which Media 100 will use the video editing and effects software of Digital Origin in exchange for certain royalty payments. The parties plan to integrate Digital Origin's software with Media 100's Internet streaming media software, Media Cleaner, to deliver consumer-level video editing and streaming tools to millions of Internet desktops.
You can find more information on Digital Origin at their web site.
The Mac Observer Spin: Their future direction sounds an awful lot like iMovie, the consumer digital editing product that comes bundled with the iMac DV. This is a good thing for consumers and Apple alike in that their products will help raise awareness of Desktop Video. The higher that consumer awareness is, the more the iMac DV will look attractive.
This sort of reminds us of the comments Bill Gates made in a recent interview where he calmly lists supposed new features of the next consumer version of Windows that sound very much like Apple's own. The difference with Media 100 and Mr. Gates' announcement is that Media 100 will likely produce more than vaporware.