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Technicolor Set To Buy Matsushita Replicators

26 Feb, 2002 By: Hive News

Thomson multimedia and Matsushita Electric Industrial Co. is preparing to sell Technicolor its DVD and CD replication and distribution operations in the U.S. and Europe, the companies announced today.

Camarillo, Calif.-based Technicolor is set to acquire Panasonic Disc Services Corp. (PDSC), Matsushita's wholly owned replicator subsidiary.

Matsushita established PDSC in 1996 with the stated goal of accelerating market acceptance of DVD players. PDSC, which operates in six sites in the U.S., Mexico and Europe, has been producing DVD discs for the entertainment and computer industries and serves several major Hollywood studios including Universal and Paramount.

The combination of PDSC within Technicolor Home Entertainment Services presents substantial business synergies and represents another step toward parent company Thomson's strategic vision to advance, enable and manage the digital media transition for entertainment, media and content industries, a Thompson spokesperson said.

The acqusition would provide customers with a broader spectrum of DVD-Video, DVD-Audio and DVD-ROM replication, packaging and distribution capabilities in North America and Europe, the spokesperson said.

With DVD players now outselling VCR's and DVD player unit sales exceeding 12.4 million units in the U.S. last year, Matsushita has achieved its initial objective of helping to successfully launch the DVD business, the spokesperson said.

Matsushita will continue to own and operate the Torrance, Calif. facility of PDSC to support replication service requirements of its existing game software customer.

Thomson and Matsushita Electric agreed to work on a definitive agreement, which is subject to conclusion of due diligence and internal and external consents and regulatory approvals.

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