A few months ago I wrote about Kontiki, the enterprise-class P2P vendor that was tapped to power AOL's In2TV venture.
Today, Verisign [VRSN] acquired Kontiki for $62 million. Verisign offered very little detail on the terms of the deal, suggesting that "the financial impact of the transaction will be disclosed following the closing." At least one blogger thinks the deal was a disappointing exit for the Kontiki VCs.
Kontiki’s system will form the cornerstone of VeriSign’s Broadband Content Services platform to enable the delivery of rich media over broadband networks to personal computers, television sets and portable devices. The broadband delivery capabilities complement VeriSign’s Mobile Content Services infrastructure and expand the company’s Content Services portfolio.
Broadband content is on the cusp of exploding and Verisign is trying to secure its place at the table. Whether they can successfully Kontiki's early successes remains to be seen, but this deal is a testament to the scalability of Kontiki's platform. This is a crowded space, and now Kontiki has a significant infrastructure and capital base at its disposal.
Related Posts:
- Kontiki: The Not-So-Secret Sauce in AOL HiQ IPTV Venture
- AOL Invests in Brightcove: What About Kontiki?
- Brightcove's Latest Publicity...missing the mark somewhat?
Note: At the time of this writing, I and/or funds I maintain discretionary control over, did not maintain an equity position [long or short] in VRSN.
with $42 million in the deal I think it is a disappointing exit. The pragmatist in me says anytime you don't lose money you are doing okay.
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Posted by: Aaron Keogh | March 14, 2006 at 10:53 PM