Yeah I'd have to agree with your comments on D & M.
They seem to understand the specialist high-end market, which has complex functionality and good product design

This is not totally unexpected - SB had to make repayments of debt this month and obviously couldn't make that hence Chapter 11.

The 2 big questions are:

(1) will this deal proceed? - D&M said they maybuy the company, and that "discussions are still continuing".

(2) will D&M "get" MP3 playback (only) devices - which is after all what Rio [and empeg] was all about. They don't do ATRACS or any other stuff - its mp3 [yeah they do WMA, but no-one I know uses that format if they can use mp3 due to license/digital rights issues].

Those two issues aside, it may be that this outcome turns out to be the *BEST* thing to happen to the guys - if the deal proceeds and they let products like the Pearl continue to be developed.

They also know how to market and dsitribute product worldwide - something SB seemed to have trouble understanding.

I'm sure with a little help from D&M marketing, the Pearl could now seriously become the next iPod - e.g. small, upmarket device, that sells well to those who appreciate the product and software design, and will pay a reasonable premium for it].

I guess the PVP [Personal video Player] device SB were developing with Intel may not see the light of day.