The European Commission’s antitrust authorities have approved Dolby Laboratories’ proposed acquisition of Doremi Labs. The two companies signed a definitive agreement in February under the terms of which Dolby would acquire Doremi for $92.5 million in cash, plus an additional $20 million contingency that could be earned over a four-year period (Display Monitor Vol 21 No 9). The Commission said in a statement that the deal would not lead to any anti-competitive effects “because of the presence of alternative suppliers, the fast-moving nature of the market and the ease of switching for customers”.
The news came as Dolby reported its fourth quarter and full year results, saying that its broadcast business continues to outperform the markets globally. The company reported an 8.9% increase in net profit for the year to $206.1 million on turnover which was 5.5% higher year on year at $960.2 million. In its previous fiscal year, Dolby recorded a net profit of $189.3 million on turnover of $909.7 million. In the final quarter of the year Dolby’s net profit was broadly flat YoY at $45.9 million on turnover of $227 million, an improvement of 4.8% from the fourth quarter of last year.
