Onstream Media signs agreement to acquire Narrowstep
June 2, 2008 - Onstream Media, a US-based online service provider of live and on-demand Internet video, has signed a definitive merger agreement to acquire Narrowstep, a US provider of Internet TV and IPTV services, with shareholders of Narrowstep to receive 11.3mn shares of Onstream Media common stock plus the possibility of earning up to an extra 8.9mn shares subject to Narrowstep revenue growth targets.
The combination of Narrowstep's automated IPTV platform, called Telvos, and Onstream's Digital Media Services Platform (DMSP) is expected to result in a single comprehensive platform with the ability to acquire, store, manage, process, protect, monetise and deliver digital broadcast quality video to TVs, computers, iPods, mobile phones and other devices. The acquisition is expected to close in approximately 90-120 days, subject to shareholder approval. Both firms have agreed to immediately implement a restructuring plan to reduce or eliminate costs.
"Since the founding of Onstream Media our strategic direction has been predicated on capitalising on the integration of video-on-the-web and broadcast television, making web-based programming indistinguishable from over-the-air, cable or satellite-originated programming," said Randy Selman, President and CEO of Onstream Media. "With the addition of Narrowstep, we now have a full suite of enabling technologies to address this emerging market requirement. We believe that the combination of Narrowstep's automated IPTV platform and Onstream's advanced capabilities in meta-tagging, optimisation, indexing and classification will solidify our leadership position within the industry making Onstream even more attractive to a wide range of potential partners, including telecom, satellite and cable companies, and hardware vendors."
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