NTT DoCoMo to buy out PacketVideo from NextWave

NEW YORK, USA: Japanese operator NTT DoCoMo Inc has agreed to buy out mobile media technology supplier PacketVideo from its current owner NextWave Wireless for $111.6 million, according to PacketVideo.

DoCoMo bought 35 per cent of PacketVideo in July last year for $45.5 million and its agreement with NextWave included an option to buy the remaining 65 per cent of the company.

It now plans to make PacketVideo a wholly owned subsidiary of DoCoMo in a deal that is expected to close in the third quarter, according to founder and chief executive James Brailean.

PacketVideo said it will have its own board and will operate as a autonomous operation headed by Brailean.

The company, which boasts Verizon Wireless and Orange as customers, said it plans to continue to support all its customers, the majority of which are outside of Japan.

Verizon Wireless, a venture of Verizon Communications and Vodafone Group Plc, is the biggest U.S. mobile provider. Orange is part of France Telecom.