RealNetworks Acquires Vivo
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In an effort to further accelerate the adoption of streaming media on the Internet, RealNetworks announced today it acquired Vivo Software, Inc., the Waltham, MA-based developer of streaming media creation tools.
Under the purchase transaction, RealNetworks reports that all outstanding shares of Vivo will be exchanged for 1.1 million new RealNetworks shares valued at $17.1 million. After the acquisition is completed, the company said the new shares will comprise 3.4% of the total 32 million shares outstanding.
RealNetworks said it expects a significant part of the purchase price to be written off as in-process research and development, and does not expect the acquisition to have an impact on the company's overall financial results this year.
Under the acquisition, RealNetworks acquires Vivo's technology, intellectual property, and customer base, with key Vivo personnel joining RealNetworks as part of the deal.
"RealNetworks acquisition of Vivo's technology is a significant step in our efforts to provide content creators with a broad range of the most powerful tools to produce streaming media content and the broadest choice of hosting platforms. We are committed to both supporting Vivo's current Web site and customer bases and providing smooth integration and upgrade paths into the rest of RealNetworks product lines."