Thomson To Acquire Video Division Of ParkerVision

Thomson announced an agreement to acquire the video division of ParkerVision, a provider of live television production automation systems. By acquiring this division, Thomson is providing an opportunity for broadcasters to cut time and operational cost out of news production. Based in Jacksonville, Florida, the division is best known for its PVTV(TM) live news production and professional Cameraman(R) robotic camera lines. The transaction is valued at approximately $14 million in cash and remains subject to typical closing activities. The sale is expected to close in the first half of 2004.



The acquisition reflects Thomson's strategy to expand its core broadcast business as well as to move into adjacent video markets. The integration of ParkerVision technologies into Thomson's broadcast line capitalizes on broadcasters' increasing demand for production and automation technologies that help cut the time and cost required for live production, including news production, and that help provide a consistent look and feel across broadcasts, which is key to driving viewership, ratings and revenue for television stations.



Over the past two years, nearly 15 percent of the world's newsrooms have shifted from analog, tape-based equipment to digital systems and, as a result, are realizing significant workflow and capital efficiency gains. This trend is expected to continue as more stations in the U.S., Europe and elsewhere adopt these technologies. The digital news production segment is currently estimated at $400 million. The company expects that the news portion of this market grow substantially as small- to mid-sized markets adopt digital production technology.



At the same time, an increasing number of broadcasters and video professionals worldwide are moving to multi-format/ high-definition and new more automated workflows for live productions, such as sports and entertainment events, game shows, and some episodic programming. As well, demand is emerging for corporate applications and efficient delivery of packaged content for Web-based viewing. In all, the company estimates that market demand for such live production solutions is approximately $1.5 billion per year, with 8% to 10% growth seen through 2008. Thomson is a market leader in this segment.



Thomson will integrate the ParkerVision products with the Grass Valley(TM) digital news production workflow to provide the industry's first tight linkage between news production systems and news control rooms. In 2003 alone, Thomson installed systems for news and shared editing for 62 new customers. In the U.S. these include ABC Owned & Operated Stations, CNBC, NBC Owned & Operated Stations, FOX stations, and several large television station groups. Other new customers include SBS and MBC in Korea; the European Parliament and Flevoland in Europe; and TV Amazonas, Centro de Radio y Television, and Canal 1 in South America.