DoCoMo just announced it has acquired 35% of PacketVideo for $45.5 million in all-cash transaction effective immediately. The companies have worked together over the last 10 years, with the PV CORE technology embedded into over 90 FOMA models, and continued growth in the mobile multimedia space the companies statement suggest it’s a natural evolution. Considering the recent JV with AVEX to launch BeeTV this spring, and expected moves into other markets, this strategic alliance may well prove most interesting as next-gen. networks come into place.
Toshio Miki, Associate Senior Vice President, Managing Director of Communication Device Development Department for NTT DOCOMO, said: “PacketVideo has been a key supplier of software to DOCOMO and has made important contributions to the success of our services in the Japanese market. We are pleased to become an equity partner of PacketVideo and are very confident of the company’s continued growth and long-term success.”
James Brailean, Ph.D., CEO of PacketVideo said: “We are honored to welcome DOCOMO as an investor. We are building on our unique and highly successful relationship with DOCOMO to further strengthen PacketVideo’s position in developing the best in class media experience, regardless of format or platform. PacketVideo is the global leader in delivering rich media solutions for mobile operators, and DOCOMO’s support will enable us to accelerate our innovation and growth.”
It should come as little surprise that flat-rate data plans have increased the adoption and usage of mobile, especially the heavy content offerings. While some would suggest it’s a certain content segement that’s starting to clog the wireless pipes, on all levels the volume is increasing.. and will continue to do so, not just in Japan. While there are certainly contenders in this space, PV has been in the game for a long time and with DoCoMo’s help now they may well be able to hold a share of the increasing pie.