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DivX share price rises 17% after IPO

Written by Petteri Pyyny (Google+) @ 25 Sep 2006 1:31 User comments (9)

DivX share price rises 17% after IPO Last Friday, DivX, Inc. finally got listed on NASDAQ technology market, marking the first significant digital multimedia IPO in ages.
Company's share price did quite well during company's first day as a publicly listed company as its shares jumped 17 percent from the opening price of $16 to settle at $18.70 by the time of market closing on Friday. Share price peaked at $19.50 during the day's trading.

The $18.70 price gives San Diego -based company a market value of $625 million. Company has more than 200 employees and its annual revenue for the financial year 2005 was $29.3 million.

DivX became a household name in 2000 when it was dubbed as the "MP3 of the video", as it quickly became the most common video format in P2P networks and was associated to rapidly growing piracy of Hollywood movies. Nowadays DivX licenses its video encoding and DRM technology to several movie studios, device manufacturers and online video stores.

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9 user comments

125.9.2006 3:13

I got a question!! Did DivX not start out as a hacked version of a microsoft codec, and the guy who was behind it did he not split from DivX as he didnt agree with where the other people wanted to take it to. And as a result he started the XviD codec and kept it all free. This is a wierd situation, on one hand you could have made a fortune but on the other hand, if you already have a few bob then it would be nice to have your head held high. Wonder what he thinks???? Koepi.

225.9.2006 4:13

joe777: No, gej is still working for DivX, Inc. XviD is the spin-off that started (AFAIK) when DivX, Inc. ceased their open source initiative called OpenDivX and focused on proprietary version of the codec.

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This message has been edited since its posting. Latest edit was made on 25 Sep 2006 @ 4:14

325.9.2006 7:15

DivX and Project Mayo were the reasons I found AfterDawn a few years ago :)

425.9.2006 13:52

Screw DivX. Go for FFDShow instead.

525.9.2006 20:41

pretty impressive for a codec that pixilates when thrying to show "fog".

626.9.2006 1:16

dRD. I stand corrected, or should I say my question was answered. Nice 1 maybe I could have done a little research before the post eh!! LOL Theres always next time.

726.9.2006 3:39

Its good to see that DivX is doing so well on the market. I like the compression rate you have with this codec. although i use many different programs also, for different video types.

827.9.2006 1:59

DivX and Project Mayo were the reasons I found AfterDawn a few years ago :)
Same here : ) Wow, that´s awhile ago now.

927.9.2006 13:34

Screw DivX. Go for FFDShow instead.
LOL does he know what DivX is??? :D

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