DivX shutters video website Stage6
DivX, Inc. (Nasdaq: DIVX) shares are declining after the maker of video compression software announced before the opening that it is shuttering its Stage6.com website, which hosts streaming videos. The website competed with YouTube and had several advantages, including higher-resolution video.
The San Diego, Calif.-based firm said it made the decision after an exploration of strategic options that began more than six months ago. The company weighed selling, spinning off and shutting down Stage6. In a press release, DivX cited costs and resources as reasons for closing down the service.
As of 2 p.m. on Monday, DivX still had a link to Stage6 on the front page of its website. DivX said users will be able to view and download videos until Thursday. In a vaguely worded release, the firm said it will “continue to offer services that will make it easy to find videos online in the DivX format.”
In afternoon trading, DIVX shares are down 0.83%, or $0.10, at $11.94. Over the last 52 weeks, shares have ranged from $11.35 to $23.76.
