RealNetworks To Buy WiderThan For $350 Million
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RealNetworks, Inc. (RNWK) said late Tuesday it has agreed to buy South Korea-based mobile music and entertainment provider WiderThan Co. (WTHN) for $17.05 a share, or roughly $350 million.
The offer represents a 20% premium on WiderThan’s closing share price on Tuesday of $13.97.
Seattle-based RealNetworks expects the deal to close in the first-quarter of 2007 and to add to its earnings next year, excluding acquisition-related charges.
The company plans to keep the WiderThan brand intact and operate the business as a subsidiary, maintaining its existing employee base.
WiderThan, which provides ring tones and music-on-demand, had revenue of $61.9 million in the six months ended June 30.
The acquisition will be conducted through a cash tender offer, RealNetworks said, and 44% of WiderThan’s shareholders have agreed to support the deal and tender their shares.
