RealNetworks to acquire mobile music and entertainment group WiderThan for USD 350 million

After the acquisition of Loudeye by Nokia, another big acquisition that is changing the mobile music landscape. RealNetworks has agreed to acquire the mobile music and entertainment group WiderThan for USD 350 million cash. WiderThan supplies ringback tones, music-on-demand and other mobile entertainment services to over 50 mobile carriers in more than 25 countries, including SK Telecom, Verizon Wireless and Bharti Airtel. For the six months ended 30 June, WiderThan had sales of USD 61.9 million, up 39 percent over the same period in 2005. Net income was USD 7.4 million, an increase of 79 percent from the prior year, while adjusted EBITDA rose 64 percent to USD 14.2 million. A t the end of the first half, WiderThan had cash of USD 93 million. RelNetworks plans to continue with the WiderThan brand name and staff levels, with the takeover to add to 2007 earnings, excluding acquisition-related costs. (Source: TelecomPaper)