Verisign Acquires Broadband Video Firm Kontiki For $62 Million; Forms VeriSign Broadband Content Ser

VeriSign continues its web services expansion with the $62 million acquisition of California-based Kontiki as the basis of the new VeriSign Broadband Content Services, which will deliver rich media over IP. Kontiki provides peer delivery systems for high-quality video, software and digital content; current clients include AOL, BSkyB and Verizon. The deal is expected to close this quarter.

From the press release: Vernon Irvin, EVP and GM, VeriSign Communications Services: “In today’s ‘any era’ where consumers are driving demand for how, when and where content gets delivered, 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.”

– VeriSign also completed the 55-million euro acquisition of 3united Mobile Solutions ag.

Rafat adds: Kontiki is among the few legitimate P2P solution providers out there and certainly the one with the most traction among the media industry. The company has been powering BBC’s big online video project and has done work with some big media companies here in delivery.

It was founded by former Netscape alumns, including Mike Homer.

In terms of an exit for the VCs and founder/shareholders, probably not a Home(r) run (pun intended!): the company had raised almost $42 million till date, and everyone was probably pretty diluted by now.

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