NextWave buys Packet Video....interesting.
rcrnews.com
NextWave acquires majority stake in PacketVideo
By Mike Dano
Sep 12, 2005
In a surprise move, NextWave Telecommunications Inc. bought out PacketVideo Corp.'s investors. Details of the move, including how much NextWave paid for its majority interest in PacketVideo, were not disclosed.
Since its founding in 1998, PacketVideo has raised a total of $140 million from the likes of Intel Corp., Motorola Inc., Qualcomm Inc., Siemens AG, Time Warner, Sony Ericsson Mobile Communications L.P. and Reuters. NextWave essentially purchased those investments, which gives the carrier a majority interest in PacketVideo.
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NextWave "is a very good partner for us," said Dann Wilkens, vice president of marketing and communications for PacketVideo.
However, Wilkens said PacketVideo will remain an independent company, despite NextWave's majority shareholder status. PacketVideo sells software to handset makers to play media files, including video and music files.
"We can't afford to be aligned with any one camp," Wilkens said.
Wilkens declined to say whether NextWave is a PacketVideo customer. NextWave did not immediately return requests for comment.
The move is surprising for both companies. NextWave earlier this year emerged from a long and troubled bankruptcy process that began in 1998. The saga began when the carrier was unable to obtain the necessary financing to make the installment payments on the licenses it had bought at government auction in 1996. The C-block auction, as it was known, was set up for small businesses. Because it was the third auction after large, established carriers already had purchased their licenses, many of the C-blockers did not succeed.
MocoNews.net originally reported the acquisition Sept. 9.
The issue eventually went to the U.S. Supreme Court, which ruled in favor of NextWave. Ultimately, NextWave sold its PCS licenses to Cingular Wireless L.LC. and Verizon Wireless and returned other licenses to the FCC. The FCC recently sold those licenses for $2.25 billion.
Now, NextWave plans to launch a commercial broadband wireless network in Las Vegas later this year and in 2007 in New York. NextWave also plans to make its network available to public safety.
NextWave's interest in PacketVideo is unclear at best.
PacketVideo too has a somewhat twisted past. The company split in 2003 when Alcatel Corp. purchased the network side of PacketVideo. The remaining portion of the business-which kept the PacketVideo name-focused on sales of software to handset makers. Last year, PacketVideo counted more than 60 design wins and 17 million handsets shipped, with customers like Nokia Corp., Sony Ericsson and others. PacketVideo has posted profitable financials during 2005. |
