SFMS Announces Investigation Into Sonic Solutions’ Acquisition Of DivX, Inc.

June 3rd, 2010

SFMS is investigating the agreement under which Sonic Solutions (“Sonic”) (Nasdaq: SNIC) intends to acquire DivX, Inc. (“DivX”) (Nasdaq: DIVX). Under the agreement, announced on June 2, 2010, Sonic would acquire all the outstanding shares of DivX and merge DivX operations into Sonic. The agreement would give DivX shareholders a combination of cash and stock equivalent to $3.75 in cash and 0.514 shares of Sonic Solutions stock for each DivX share of common stock they own. The deal is valued at more than $300 million. Following the announcement of the deal, Sonic shares fell 9.5%. SFMS’s investigation of the agreement concerns whether there has been adequate disclosure to shareholders concerning the terms of the acquisition and whether the compensation offered to DivX shareholders pursuant to the acquisition is adequate. The transaction is expected to be completed in September 2010.  
 
If you own shares of DivX and would like to learn additional information about this investigation, please contact Karen M. Leser-Grenon at (866-540-5505; kleser@sfmslaw.com) or Patrick A. Klingman (866-540-5505; pklingman@sfmslaw.com).