To grow its base in the international mobile commerce business, RealNetworks Inc. is acquiring WiderThan Co. Ltd in a deal valued at $350 million. WiderThan is a provider of ringtones, music-on-demand and other mobile entertainment services to more than 50 wireless carriers in more than 25 countries, including SK Telecom in South Korea, Verizon Wireless in the U.S. and Bharti Airtel in India.
Upon completion of the transaction, WiderThan will become a wholly-owned subsidiary of RealNetworks, No. 92 in the Internet Retailer Top 500 Guide to Retail Web Sites. “Our combined company will be very well positioned to lead the next generation of digital media delivery,” says RealNetworks chairman and CEO Rob Glaser.
The companies’ geographic footprints are complementary, with both having market penetration in North America; additionally, RealNetworks is strong in Europe and WiderThan has a growing base in Asia, Glaser says. “This acquisition also provides RealNetworks with technology and customer relationships to extend our music subscription service into the rapidly growing mobile music space,” he adds.
For the six months ended June 30 WiderThan reported net income of $7.4 million on revenue of $61.9 million.
RealNetworks continues to grow its online music business. In Q3 the company’s digital music revenue was $30.4 million, a 16% increase over the third quarter of 2005.
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