NTT DOCOMO (s DCM) said tonight it has paid $45.5 million in cash for a 35 percent stake in mobile video company PacketVideo, a subsidiary of NextWave Wireless (s WAVE). The two companies have worked together for more than 10 years, with PacketVideo’s pvPlayer installed on more than 90 of DOCOMO’s handset models. They said the stake was intended to help bulk up DOCOMO’s music and video services in Japan.
San Diego-based PacketVideo claims it was the first company to ever put streaming video over a 2G mobile network way back in 1999, and says its software has shipped on 360 million devices to date. Earlier this year, it released a live TV app for the iPhone.