DivX Files For $135 Million IPO; Buys Community Platform Company: "
San Diego-based digital video codec firm DivX has filed for an IPO on Nasdaq to raise as much as $135 million. The company, whose technology allows large video files to be delivered online, plans to use the proceeds from the IPO to license products and technologies and for general corporate purposes, according to the S-1. It will trade under the symbol ‘DIVX’.
From the S-1: DivX saw its revenue double from $16.4 million in 2004 to $33 million in 2005. It posted a $2.29 million profit in 2005, compared with a $4.34 million loss for 2004. At the end of March, the company employed 189 workers.
The company has raised $38.4 million since its inception. Investors include Zone Ventures, WI Harper and Insight Venture Partners.
On its customer base, Philips accounted for about 13% of its total revenues. Revenues from Google accounted for about 15 percent of its revenues (Google syndicates its services through DivX software downloads).
Also, the company has recently started focusing on its online video offerings…and as part of that, it has bought a small web development firm called Corporate Green, that has developed an online community platform. The purchase price consisted of an initial cash payment of approximately $351,000 and a total of 208,950 shares of the company’s common stock, and the three founder of CG have joined DivX.
Related:
- CES: DivX Partners With Google For Digital Home; To Launch Download Service
- DivX Receives $17 Million Funding
(Via paidContent.org.)