Motorola, NetSpeak Expand Alliance
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Motorola Inc. and NetSpeak Corporation expanded their existing alliance today with news that Motorola plans to use NetSpeak's technology to deliver IP Telephony (Internet Protocol) multimedia communications via wireless networks.
The companies said their expanded relationship will include joint development and licensing of technology, in addition to a $30 million multi-year minimum purchase commitment by Motorola for NetSpeak Products.
Motorola said it will also increase its stake in NetSpeak through a cash tender offer for 3.0 million shares of NetSpeak stock (approximately 34.5% of NetSpeak's outstanding shares not owned by Motorola) for $30 per share.
Under the licensing agreement, Motorola plans to develop RF (Radio Frequency) products using NetSpeak technology, which will be incorporated into all of Motorola's wireless infrastructure and subscriber devices for delivery of real-time voice, fax, audio, video, and data communications over wireless networks.