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November 16, 2007
Musiwave Sold On To Microsoft
Sister site alarm:clock has the news that Microsoft is to acquire mobile music track provider Musiwave for $46M plus the assumption of about $4M in debt.
Musiwave, was a VC-backed French venture that was acquired by Openwave for $121M in September 2005. Apparently Openwave has been undergoing a turnaround and this sale was part of a plan to focus on 'core assets' of the business (see below).
Openwave did not do as well with its Eruopean acquisition as Verisign did with ringtone provider Jamba, which was also a VC-backed mobile sector venture, which it bought in 2004. In January of 2007, the US security and Interent technology firm sold a 51 percent stake to NewsCorp for $187.5M, according to moconews , a deal valuing the venture at $375M, a good $100M more than what it paid in 2004.
Openwave Executes Definitive Agreement with Microsoft
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© Business Wire 2005
2007-11-15 16:38:06 -
- Openwave Systems Inc. Mike Bishop, 650-480-4461 (Investor Relations) investor@openwave.com Vikki Herrera, 650-480-6753 (Public Relations) Vikki.Herrera@openwave.com Openwave Systems Inc. (Nasdaq:OPWV), today announced the execution of a definitive agreement for Microsoft to acquire Musiwave, a leading provider of mobile music entertainment services to operators and media companies, and a wholly-owned subsidiary of Openwave.
"Musiwave's strong customer
relationships, superior quality of services, and leadership position in mobile music were attractive to Microsoft and contributed to the ultimate purchase price," said Robert Vrij, president, CEO and interim Chairman, Openwave. "As we committed to our investors, the divestiture of Musiwave was an important component of the plan developed by the Openwave Board and management team to focus on driving market leadership in the core assets of our business, including service management, messaging, client and location."
Financial Terms and Schedule
Under the terms of the definitive agreement, Microsoft will acquire Musiwave for $46 million in cash and assume net debt. As of September 30, 2007, Musiwave had a net debt of approximately $4 million. The transaction is expected to close following the completion of customary closing conditions including regulatory approval. Merrill Lynch & Co. served as exclusive financial advisor to Openwave in the transaction.
"Microsoft is committed to delivering connected entertainment experiences for all consumers, including the access to rich music content," said Pieter Knook, senior vice president of the Mobile Communications Business at Microsoft. "With the acquisition of Musiwave, we are deepening our position in the mobile entertainment market with an innovative provider to help broadly deliver a breadth of music software and services."
About Musiwave
Musiwave is a leading provider of mobile music entertainment solutions, including software, marketing and content management, to operators and media companies worldwide. Musiwave provides mobile music entertainment services to 30 mobile operators in 25 countries and powers more than 20 full-track mobile music services. For more information, please visit www.musiwave.net.
About Openwave Systems
Openwave Systems Inc. (Nasdaq:OPWV) is one of the world's leading innovators of software applications and infrastructure designed to enable revenue-generating, personalized services, including merchandising and advertising, which converge the mobile and broadband experience across all of a user's devices.
As the communications industry intersects with the Internet, Openwave software enables service providers to converge services, increasing the value of their networks by accelerating time to market and reducing the cost and complexity associated with new service deployment. Openwave's unique product portfolio provides a complete range of service management, messaging, location and client technologies. Openwave is a global company headquartered in Redwood City, California.
Openwave is a trademark of Openwave Systems Inc. All other trademarks are the properties of their respective owners.
Posted on November 16, 2007 08:32 AM | Posted to News And Updates | Permalink
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