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RealNetworks Buys Sony Division For Mobile Media Technology


Posted by Stephen Wellman, May 17, 2007 09:08 PM

RealNetworks bought a division of Sony called Sony NetServices for $9 million. The deal will give RealNetworks technology that broadcasts music, video, and games to mobile phones in Europe. Is mobile content still a viable long-term play?

RealNetworks is buying mobile companies outside of the U.S. in an attempt to gain market share in the global wireless industry. The company hopes its bet on mobile content will pay off. Right now RealNetworks is barely breaking even, with its second quarter results below estimates.

In addition to buying Sony NetServices, RealNetworks this week also inked a deal with Vodafone to support its mobile music services in Europe.

Last year RealNetworks bought WiderThan, a South Korean firm whose platform distributes downloadable music and ringtones to cell phones.

What do you think? Is RealNetworks' decision to bet on mobile content smart?

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