Sonic will buy DivX for about $320 million in cash and stock . Both businesses want to evolve past the future death of the DVD, today's mainstay for both companies.

Sonic purchased CinemaNow, a pioneer in the movie-download business, and now Best Buy and Blockbuster use Sonic's platform for video service.

Sonic says DivX will bring a more extensive solution for internet video delivery and proven tools for content prep in "the cloud," video playback, and Hollywood-approved DRM.

Go Sonic Buys DivX, Not Everybody Happy