VeriSign is entering into the broadband content services market with an announcement that it will acquire digital media distribution company Kontiki for $62 million, after spending a similar sum acquiring 3United, an Austrian company specialising in mobile applications.
VeriSign is entering into the broadband content services market with an announcement that it will acquire digital media distribution company Kontiki for $62 million, after spending a similar sum acquiring 3United, an Austrian company specialising in mobile applications.
VeriSign describes itself as a digital infrastructure company and is perhaps best known for its digital security and domain registration services. VeriSign started as a corporate customer of Kontiki before investing in the company.
The Kontiki system will underpin a VeriSign broadband content services platform to enable the delivery of rich media over broadband networks to personal computers, television sets and portable devices.
“VeriSign is investing in building an intelligent infrastructure for operators, internet portals, media companies and consumer brands to use to deliver content to all three screens,” said Vernon Irvin of VeriSign Communications Services.
As previously reported by informitv, major media companies including AOL, Verizon, the BBC and BSkyB are using the Kontiki managed peer-to-peer distribution network to deliver high-quality audio and video downloads over the internet. Kontiki provides the download manager for the AOL In2TV broadband video service.
“Kontiki is excited to be part of VeriSign, a trusted provider of globally scalable, reliable and secure managed services, and serve as the cornerstone of its broadband content services platform,” said Todd Johnson, the chief executive of Kontiki. “As we combine our expertise, we will continue creating real value for our media and enterprise customers and companies.”
Founded in 2001, Kontiki is a privately held company with just 34 employees, based in Mountain View, California. The deal represents a modest return on the $46 million initial investment in the company from venture capital firms. It considerably strengthens the position of Kontiki as a leading provider of peer-to-peer delivery management systems.