DoCoMo Acquires Remaining Share Of PacketVideo For $111.6 Million

Japanese carrier NTT DoCoMo (NYSE: DCM) has agreed to pay $111.6 million for the remaining 65 percent interest in PacketVideo that it did not already own to create new services that would allow users to share content easily between phones and other consumer electronics.

DoCoMo already owned 35 percent of the company, after buying a stake in July 2009. The acquisition is expected to close in September, after passing all customary closing conditions. It bought the remaining stake in PacketVideo from parent company Next Wave Wireless.

San Diego, C.A.-based PacketVideo has created a multimedia platform that is used by various carriers in North America, Europe and Asia. It also created a new music service launched by AT&T (NYSE: T) earlier this year that incorporates streaming radio services and music sales, including ringtones and full-track music, in one application. The company has also developed free downloadable apps on Android and other platforms, called Twonky, that allows users to share pictures, music and videos between PCs, phones and other devices such as TVs, digital picture frames and audio equipment. Two of the big hurdles in this space include DRM and licensing agreements with content owners.

In a previous interview, PacketVideo’s SVP Neil Sharma, told mocoNews that subscription services broke down and didn’t work because they couldn