Plays No More? - Rio Sells Technology
The mantra of Microsoft's PlaysForSure campaign is CHOICE. Choice in portable device options. Choice is music download stores. Choice in subscription services. Today, we may be on the verge of one less choice.
DM-Holdings, owner of prestigious audio brands Denon and Marantz, sold some of the intellectual property and technology assets from their Rio business unit to SigmaTel. As part of the deal, Rio retains free grant-back licensing of all technology sold to SigmaTel, which also acquired many of the engineers responsible for Rio's innovations in MP3 player development.
What isn't clear is where this leaves consumers. Rio has been losing money for some time now making this either a plan to shore up a sinking ship or the first stage in the shut down of one of the earliest portable MP3 player manufacturers.