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July 06, 2009
NTT DoCoMo Acquires $45.5 Million Stake in NextWave Wireless Subsidiary
TMCnet Contributor
NextWave Wireless has announced that Japan-based mobile operator NTT DoCoMo has acquired a 35 percent equity stake in its subsidiary, PacketVideo (News - Alert), for $45.5 million.
PacketVideo is considered to be one of the pioneers in wireless and digital home multimedia software and service applications. The net proceeds from the transaction are expected to be applied to redeem a portion of NextWave’s Senior Secured Notes that is due next year in July.
Under this transaction agreement, DoCoMo has been granted certain rights in the event of future transfers of PacketVideo stock or assets as well as pre-emptive rights in the event of certain issuances of PacketVideo Stock.
In addition, it has also been given a call option exercisable under certain conditions to purchase the remaining shares of PacketVideo at an appraised value.
Additionally, DOCOMO is expected to have certain governance and consent rights applicable to the operations of PacketVideo.
“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,” said James Brailean, CEO of PacketVideo, said in a press statement.
According to media reports, over 90 DoCoMo handset models have been equipped with PacketVideo’s CORE multimedia pvPlayer. Reportedly, the two companies have integrated multimedia applications in DoCoMo's FOMA mobile network services since 1998.
To facilitate the DoCoMo investment, NextWave said that its note holders have provided certain waivers. This includes a release of PacketVideo’s guaranty of NextWave indebtedness, according to company officials.
NextWave Wireless (News - Alert) is a wireless technology company that develops, produces and markets mobile multimedia and consumer electronic connectivity products. These products include device-embedded software for mobile handsets, client-server media platforms, media sharing software for consumer electronics and pocket-sized mobile broadcast receivers.
Also, company manages and maintains worldwide wireless spectrum licenses. According to reports, in recent months, NextWave has been selling off much of its spectrum.
The company also announced that its wholly-owned subsidiary, NextWave Wireless LLC, has issued $15 million of additional senior-subordinated secured second lien notes due 2010 to an affiliate of Avenue Capital Management II, L.P.
PacketVideo is considered to be one of the pioneers in wireless and digital home multimedia software and service applications. The net proceeds from the transaction are expected to be applied to redeem a portion of NextWave’s Senior Secured Notes that is due next year in July.
Under this transaction agreement, DoCoMo has been granted certain rights in the event of future transfers of PacketVideo stock or assets as well as pre-emptive rights in the event of certain issuances of PacketVideo Stock.
In addition, it has also been given a call option exercisable under certain conditions to purchase the remaining shares of PacketVideo at an appraised value.
Additionally, DOCOMO is expected to have certain governance and consent rights applicable to the operations of PacketVideo.
“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,” said James Brailean, CEO of PacketVideo, said in a press statement.
According to media reports, over 90 DoCoMo handset models have been equipped with PacketVideo’s CORE multimedia pvPlayer. Reportedly, the two companies have integrated multimedia applications in DoCoMo's FOMA mobile network services since 1998.
To facilitate the DoCoMo investment, NextWave said that its note holders have provided certain waivers. This includes a release of PacketVideo’s guaranty of NextWave indebtedness, according to company officials.
NextWave Wireless (News - Alert) is a wireless technology company that develops, produces and markets mobile multimedia and consumer electronic connectivity products. These products include device-embedded software for mobile handsets, client-server media platforms, media sharing software for consumer electronics and pocket-sized mobile broadcast receivers.
Also, company manages and maintains worldwide wireless spectrum licenses. According to reports, in recent months, NextWave has been selling off much of its spectrum.
The company also announced that its wholly-owned subsidiary, NextWave Wireless LLC, has issued $15 million of additional senior-subordinated secured second lien notes due 2010 to an affiliate of Avenue Capital Management II, L.P.
Anshu Shrivastava is a contributing editor for TMCnet. To read more of Anshu’s articles, please visit her columnist page.
Edited by Patrick Barnard