Thomson Multimedia and the Matsushita Electric Industrial Company have signed a non-binding memorandum of understanding for Technicolor, a Thomson business in Camarillo, CA, to acquire Panasonic Disc Services Corporation (PDSC), which is Matsushita’s 100% subsidiary specialising in DVD and CD replication and distribution operations in the US and Europe.
Matsushita Electric established Panasonic Disc Services in 1996 to accelerate the market acceptance of DVD players. PDSC, which now operates in 6 locations in the US, Mexico, and Europe, has been producing high-quality DVD discs for the entertainment and computer industries and serves several major Hollywood studios, such as Universal and Paramount.
With DVD players now outselling VCR’s and DVD player unit sales exceeding 12.4 million units in the US last year, Matsushita has achieved its initial objective of helping to successfully launch the DVD business.
Thomson and Matsushita Electric will work to finalise a definitive agreement, which is subject to conclusion of due diligence as well as obtaining appropriate internal and external consents and regulatory approvals.