RealNetworks buys Sony NetServices

By on May 16, 2007, 1:48 PM
RealNetworks Inc. has announced today the acquisition of European music download service Sony NetServices for $9 million in cash. Prior to Sony NetServices purchase, RealNetworks had acquired South Korea-based mobile music services provider WiderThan, expanding its mobile entertainment portfolio and strengthening its market position in Europe.

RealNetworks expects the acquisition to generate incremental revenue of about $1 million for the second quarter of 2007 and about $7 million for the remainder of 2007, according to a regulatory filing with the Securities and Exchange Commission.

The company expects the acquisition to shave its results by 1 cent per share in the second quarter and by about 3 cents per share for the full year.

The deal also includes a music services agreement for Europe with Vodafone Group, which was Sony NetServices' largest customer. Now, RealNetworks has 12 music-on-demand customers with more than 196 million mobile subscribers in 11 countries giving them a strong position in the European market.




Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.