Jackie,
The problem with Interactive Objects is that you cannot find any financial information about them via the usual avenues. The SEC reporting is really spotty and slipshot, IMHO.
Microsoft has included the IO player in the Cassiopeia E-100 software package, but there are other players out there such as Utopia Softwares "Hum" and other mp3 based applications which read mp3 files and do not require conversion to the Microsoft standard.
The April 27, 1999 announcement seems to be so late. I mean to say, the software package bundled with the Cassiopeia E-100 was presumably determined some time ago. Why was the purchase announced months after the announcement of the device??? I suspect there may have been some wrangling about the arrangements, so Microsoft just bought the whole ball of wax. I am worried that this would be a one time payment to IO or the like. The press release clearly states that Microsoft owns the technology, not that it licenses it from IO.
Please note...
Microsoft to Acquire Interactive Objects Digital Audio Technology, Signs Contract for Ongoing Windows CE Development
Canadian Corporate News - April 27, 1999 14:23
Under the terms of the contract, Microsoft assumes ownership of Interactive Objects' media player technology. Interactive Objects'technology provides the first digital audio player supporting Microsoft's Windows Media file format for the Palm-size PC operating system, Windows CE. With almost twice the compression ofMP3 yielding half the file size, Windows Media 4.0 effectively doubles the storage capacity of music files on Windows CE while concurrently increasing the device's multi-tasking abilities.
Seems like there is little barrier to entry for this type of software application. The compression standard is an improvement over mp3 and the ability to multitask is essential to the survival of this type of application. Thus, IO may have a unique solution for the time being, but it is unlikely to be long-lived. Also, Microsoft would never give away a high margin, low cost solution. One wonders if IO is left with a marginalized, run of the mill software application.
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