Film-Tech Forum ARCHIVE: Dolby floatation

This is topic Dolby floatation in forum Film-Yak at Film-Tech Forum ARCHIVE.

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Posted by Leo Enticknap (Member # 534) on 02-17-2005, 05:43 AM:

quote: BBC News Online

Sound pioneer Dolby in share sale

Dolby Laboratories, the pioneer of stereo sound, has raised $495m (£262m) from the sale of its shares.

The firm sold 27.5 million shares at $18 each, valuing Dolby at $1.7bn. Shares are to start trading in New York on Thursday.

Ray Dolby - who set the firm up after getting a physics PhD from Cambridge University - still owns a 70% stake. Dolby invented a way of cutting background hiss in tape recordings and later brought out "surround sound".

From Clapham to California

The surround-sound system has been used in thousands of films, DVDs and video games. Strong demand for home cinema and DVD systems have helped boost company profits, and Dolby reported net income of $39.8m on sales of $289m in the 12 months to the end of 24 September.

Analysts warned that earnings growth is unlikely to continue at its current pace as the home cinema market becomes saturated. The company has said it is to focus on increasing revenues by licensing its technology to digital broadcasters and broadband internet providers.

Demand from investors was strong and the $18 price tag was up from the initial offer price of between $13.50 and $15.50. Mr Dolby's stake in now worth about $1.2bn.

The company, which was founded in 1965, had its headquarters on London's Clapham Road before it moved to California in 1976. Its first noise reduction product was called Dolby A. In 1975, the company released its stereo cinema system, refining it for home use in 1982.

I wonder why they're trying to raise the $495m now? R & D investment in a new product line, perhaps? I've heard speculation that they're about to enter the [dlp]

market.

Posted by Mark Gulbrandsen (Member # 72) on 02-17-2005, 08:39 AM:

quote: Leo Enticknap
I've heard speculation that they're about to enter the market.

They already are in a big way. They are the 5.1 audio on the new HDTV standard over here, in Canada, and in several other countries that have signed up for its system.

Mark

Posted by Richard Fowler (Member # 893) on 02-17-2005, 09:23 AM:

Dolby has planned the IPO for several years. The share price they received is in the same range as DTS stock. Dolby is a very profitable company and has been privately held....which is the root of the problem; California tax laws would have forced the company to be broken up or sold if the principal owner should die. Mr Dolby is 70 and in good shape; the sale / conversion to a public company rewards him and of course key people behind his success.