SonicBlue, a Santa Clara, Calif., company focused on the digital media and consumer-device markets, announced it intends to acquire ReplayTV, a licensor of digital entertainment services. ReplayTV, whose primary competitor is TiVo's Personal TV Service, changed its business model late last year from marketing directly to consumers, to marketing to cable operators. The deal calls for SonicBlue to issue 16 million shares of common stock, options and warrants to purchase shares of SonicBlue common stock in exchange for ReplayTV's outstanding equity and interests. If the arrangement goes through, ReplayTV would become a wholly owned subsidiary of SonicBlue.
Copyright February 2001, Crain Communications Inc.