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by Mike Zazaian September 23, 2006 - 8:59pm, No Comments

A DivX video player

DivX, the company that produces the popular video compression format of the same name, put itself on the stock market today with a scorching initial public offering.

The IPO weighed in at 9.1 million shares, each offered at $16.00 US apiece. DivX stock prices soared as high as $19.50 during the trading day before settling at $18.70 at the stock market’s close. Initially the company planned to offer shares at prices between $12 and $14, marking the $18.70 milestone as more than a 50% increase over initial considerations for stock sales.

DivX does for video what mp3 does for audio, compressing large files for easier storage and transfer. The DivX video compression format has been in use since 2000, when it was put out by the San Diego-based company.

Early in its life DivX was used predominantly for internet video sharing by users, violating a number of copyright laws. To prevent such uses of its software DivX added copyright protection to the package, allowing it marketability to consumer electronics producers as a commerical compression format.

[via cnet]