NTT DoCoMo has acquired a 35 percent stake in PacketVideo, investing $45.5 million in the NextWave Wireless subsidiary.
DoCoMo says the all-cash transaction is designed to strengthen its position in advanced music and video services in Japan. PacketVideo is based in San Diego.
The companies have had a partnership going back to 1998, enabling PacketVideo’s technologies to be incorporated in multimedia applications for DoCoMo’s FOMA 3G mobile network services. PacketVideo’s CORE multimedia player, pvPlayer, has been installed in more than 90 DoCoMo handset models, the companies said in a press release.
PacketVideo celebrated its tenth anniversary almost a year ago. NextWave acquired PacketVideo in 2005. In May, NextWave said it was putting its focus on the growth of PacketVideo, its sole remaining operating business, and maximizing the value of its global spectrum portfolio.
Today, NextWave reported it had issued $15 million of additional second lien notes to an affiliate of Avenue Capital Management II. The notes, which are due in 2010, brought in $14.25 million and will be used in connection with the ordinary course business operations, the company said.