Ludwigshafen, Germany. BASF Aktlengesellschaft has announced that it will sell its BASF Magnetics GmbH subsidiary to RAKS Group, one of the world’s leading manufacturers of audio and video cassettes. The deal will be completed on January 1 1997. The parties do not plan to announce the terms of sale.

BASF Magnetics has production plants in Willstatt and Munich in Germany, as well as in France, Indonesia and Brazil. Its products include audio and video tape for radio and television, audio and video cassettes for home use, diskettes, computer tape and computer tape cassettes.

In addition to its main business manufacturing audio and video cassettes, and CD’s and CD-ROM’s, the RAKS Group operates its own music and film production facilities, and its own TV channel.

Austin, TX. Crystal Semiconductor today introduced the CS4226 surround sound codec. The CS4226 is the first single-chip codec to support Dolby Digital Surround (AC-3) and Dolby Pro Logic applications.

The CS4226 incorporates stereo A/D converters, six D/A converters (each with independent volume control), a mono A/D converter and an S/PDIF receiver. The A/D converters feature 95 dB dynamic range and the D/A converters perform to 108 dB signal-to-noise ratio and 98 dB dynamic range. A 3:1 multiplexer prior to the stereo A/D converter provides selection for three different stereo audio sources.

The on-chip S/PDIF receiver supports reception of both stereo PCM audio data and compressed 5.1 channel AC-3 and MPEG audio data. This capability enables the CS4226 receiver to directly connect to both CD players and DVD players with digital outputs. The receiver also contains selectable de-emphasis filters for 32 kHz, 44.1 kHz, and 48 kHz applications.

Crystal says its new part can replace as many as nine discrete, integrated circuits in an AC-3 home theater product. Competitive solutions typically consist of an input multiplexer, stereo A/D converter, three stereo D/A converters, three volume control devices, and a digital audio receiver IC.

“The CS4226 plus an external AC-3 decoder offers the highest integration solution currently available for combined Dolby Digital Sound and Dolby Pro Logic receiver applications,” commented Roger Dressler of Dolby Labs.

The CS4226 is available in a 44-pin thin quad flat pack. It is priced at $32.00 in quantities of 1,000. Samples are available now with production quantities planned for the fourth quarter of 1996.

Last week, Crystal introduced another single-chip audio sub-system, the CS4238B, which implements QSound® Labs’ QXpander™ technology.

Minneapolis, MN. Navarre Corporation and Walter Yetnikoff, industry leader and former CEO of CBS Records, today announced the formation of VelVel Records.

The new independent music company will serve as a full-service umbrella company for a group of both new and established independent music labels, providing funding, marketing, promotional and creative support. The company has already signed a deal with Bottom Line Records and has acquired a non-controlling interest in Razor & Tie Records.

“VelVel is intent on bringing a wide array of music by today’s rising stars and established talent to as many consumers as possible,” said Yetnikoff. “We are going to compete on a level playing field with the major labels, with a reach only previously enjoyed by those major labels. We will show that independent labels are the future of this business.”

VelVel has already signed recording deals with Five-Eight, an alternative band from Atlanta; Band de Soleil, featuring gritty singer/songwriter Michelle Malone; Babyfat, another alternative rock act; and Prairie Oyster, a Juno Award-winning Canadian country group.

“We expect to have an immediate impact on the industry,” said VelVel’s President Bob Frank. “We’ll have great freedom to provide creative, operational and financial support to our labels, marketing and promoting some of today’s best artists.” Frank indicated the VelVel will have 15 employees by year end and is now in discussion with candidates for executive positions in marketing, media, promotions, finance and A&R.

Tokyo, Japan. Marantz has reported a 90% drop in profits for the first half of 1996. Sales were down 15%, with almost all products performing poorly. Notable weaknesses included audio equipment in Europe, satellite broadcast equipment in the US, and karaoke machines in Japan.

Marantz expects new product launches to help revenues recover somewhat in the second half. But the company is still forecasting a 7% drop in sales and a 39% drop in profit for the year ending in December.

Yonkers, NY. Voyetra Technologies is beefing up its operations in custom software development and licensing with OEM’s. This comes hard on the heels of its re-entry into the retail marketplace with Digital Orchestrator Plus, an update of its classic Sequencer Plus product, as well as two edutainment CD-ROM titles.

Voyetra has announced that manufacturers including Sony, IBM, Compaq, NEC, and Crystal Semiconductor are planning to license Voyetra software imminently, with complete details to be announced over the next six to eight weeks.

“Based on our market forecasting, ongoing development work, and new contracts — signed and being signed — we anticipate a surge in our OEM-related activities,” said Carmine J. Bonanno, Voyetra’s President and CEO. We’ve been increasing resources, such as engineers, graphic designers, support personnel and office space, at a rapid pace to capitalize on these marketing opportunities.”