Motorola To Buy VOD Tech Provider Broadbus: Report; Cisco Sniffing Arroyo

A bunch of M&A activity in the VOD vendor space: according to PE Week, Motorola is close to acquiring VOD server company Broadbus for about $186 million in cash. Broadbus investors include Battery Ventures, Charles River Ventures, Comcast Interactive, Star Ventures and Wolf Ventures, and should get good returns on this, the story says. It has raised $57 million in VC funding since its 1999 inception.
A JV with Tandberg Television has helped Broadbus deploy with major cable providers, like Adelphia, Charter Communications, Comcast, Rogers Cable and Time Warner Cable. Moto’s hope is that Broadbus’ technology can plug its big hole: a VOD server, and be extended to telco/IPTV arena.
Cable Digital News: Some more possible deals coming: Cisco is seeking to scoop up Arroyo Video Solutions, while a smaller player, Arris, is considering a buyout of Concurrent Computer.
M&A deals seem likely because there are so many small or mid-sized firms competing in the still-limited VOD server market. The lineup includes the two publicly traded market leaders, SeaChange International and Concurrent, which account for about 2.4 million VOD streams between them, according to Kagan Research. It also includes such smaller server vendors as C-COR (through its earlier acquisition of n-Cube), Arroyo, Broadbus, Harmonic, Kasenna, and Entone, among others.
Related: @ Media Summit: Movies On Demand: The Hot Button Issues of Internet vs Cable Vs Telco

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