fbpx

DivXNetworks Closes Series C Round of Financing to Bolster Leadership Position in Digital Video Space

May 3, 2004

Profitable Video Technology Company Will Use Funds for Marketing and Expansion

May 3, 2004—San Diego, CA—DivXNetworks, Inc., the company that created the patent-pending DivX® video compression technology, today announced that it has closed a $7M Series C Round of financing. The round was lead by Zone Ventures and included both new and existing investors WI Harper Group, Draper Atlantic, Wasatch Venture Fund, Springboard-Harper, Tim Draper, Cardinal Venture Capital, ALi Corporation, and Cyberlink International Technology Corp. (B.V.I.). DivXNetworks is a profitable company and will use the funds to bolster its leadership position in the digital video space through increased marketing, sales, engineering, and support efforts.

DivX is one of the world’s most popular video technologies with over 120 million PC and consumer electronics installations worldwide. The DivX technology suite is powered by the DivX® codec, a best of class compression technology that enables DVD-quality video at 1/10th the original file size, along with a full video-on-demand distribution system featuring proprietary security and digital rights management technology. DivXNetworks has built a profitable business by licensing its technology and brand name to leading consumer electronics, application software, and content distribution companies. The Company’s DivX Certification program, designed to enable consumers to playback DivX files on numerous types of consumer electronics devices, will drive to market over 20 million DivX Certified products in 2004, including devices from notable manufacturers such as Philips, JVC, Samsung, Plextor and more.

“We’ve had strong support from a great group of investors since the inception of the Company. This has been a key driver in our success and we’re pleased to continue the tradition with a C round that includes a mix of strategic investors combined with new and existing venture capital,” said Shahi Ghanem, President of DivXNetworks, Inc. “Our consumer electronics, software licensing and video-on-demand business units are growing at an incredible rate thanks to the international popularity of our technology and the DivX brand name. This new round of funding will allow us to maintain our leadership position and to maximize shareholder value by intelligently managing expansion while capitalizing on key market opportunities.”

“DivXNetworks has an excellent team that has built a profitable, thriving world-wide business around a great technology and a strong brand,” said Frank Creer, Managing Director of Zone Ventures. “DivX is leading the way in driving IP video to the TV through next-generation consumer electronics devices. The success of the DivX Certification program and the Company’s high-profile partnerships with leading consumer electronics and software companies reinforce this position in the marketplace.”

“DivXNetworks has a complete and expansive strategy covering everything from PC-based video creation to TV playback on leading consumer electronics devices. The Company’s early international success, particularly through our assistance in Greater China, enables it to tap into an unlimited potential market for DivX technology, profoundly changing the way consumers create, watch and distribute video content,” said Peter Liu, Chairman of the WI Harper Group. “The company has a strong management team in place and an intelligent expansion strategy to address the needs of the global marketplace in the years to come.”

For more information on DivXNetworks, visit www.divxnetworks.com.

About DivXNetworks

DivXNetworks is a consumer-focused video technology company positioned at the center of multimedia convergence. The company’s core offering is the DivX ® video codec, among the world’s most popular video compression technologies with over 120 million users worldwide. Often called “the MP3 of video,” the patent-pending DivX video technology offers DVD-quality at 10 times greater compression than MPEG-2 files, enabling full length films to easily fit on a CD or be delivered over broadband connections. DivX video technology powers a range of applications that span the convergence value chain, from a secure IP-based video-on-demand solution to next-generation consumer electronics products and video software applications. DivXNetworks is headquartered in San Diego, California, with satellite offices in Los Angeles and San Jose, CA, Taipei, Taiwan, Tokyo, Japan, Guildford, England and Dortmund, Germany.

Send me the DivX Newsletter!

Get exclusive updates, deals, tips and more.

<img src="/wp-content/uploads/2018/08/divx_logo.png" />
© 2024 DivX, LLC. All rights reserved. DivX® and associated logos are trademarks of DivX, LLC or its affiliates.