OpenTV And SpyglassÆ Sign Definitive Merger Agreement
OpenTV (NASDAQ and Amsterdam Stock Exchange: OPTV) and SpyglassÆ Inc. (NASDAQ: SPYG) announced that they have signed a definitive merger agreement. This transaction will combine a leading worldwide provider of interactive television software with a leading provider of Internet products and services. The combined company will provide a comprehensive solution to cable and satellite television network operators, broadcasters, wireless operators and manufacturers around the world as they face the challenge of moving from conventional, narrowband broadcasting to broadband interactivity. Combining the strengths of the two companies provides OpenTV the ability to deliver the most compelling digital interactive television experience to its customers and their viewers. This merger also provides OpenTV access to Spyglass' customer base and the potential for additional revenue opportunities. As part of its overall growth strategy, OpenTV will now be able to leverage Spyglass' technologies to expand into the burgeoning wireless communications market. A Compelling Combination Jan Steenkamp, President and Chief Executive Officer of OpenTV, said, ""By combining these two industry leaders and technology pioneers, we will drive the future development of the digital interactive television and wireless communications markets. OpenTV will deliver a complete - and very compelling - array of software solutions and services to network operators, broadcasters, wireless operators and manufacturers at a time when digital interactive television and broadband Internet connectivity are rapidly becoming a reality around the world."" ""OpenTV has become the worldwide leader in providing software for digital set-top boxes that support a large number of interactive applications without requiring a high-speed broadband connection,"" Mr. Steenkamp continued. ""With the combination of Spyglass' cutting-edge Device Mosaic technology and the broadband market coming of age, we will expand our offering, allowing viewers the ability to access the latest interactive and online functions such as Web browsing, chat, e-mail, shopping and TV commerce."" ""We also will be able to pursue new opportunities for additional growth, initially by extending Spyglass' successful interactive television technologies and professional services business,"" Mr. Steenkamp added. ""In addition, we intend to build on Spyglass' strong foundation in the wireless communications market, where it already derives a significant amount of revenue from professional services and licensing fees related to its state-of-the-art Spyglass Prism content transformation platform."" Spyglass Prism is a server-based product that reorganizes and reformats standard Web content to display on set-top boxes, mobile phones and other non-PC devices. With the inclusion of this key-enabling technology and Spyglass' success in delivering a leading transformation platform for Internet-enabled mobile devices, OpenTV will be well positioned to be a leading provider of technologies and services for the wireless communications market. Spyglass has provided its technologies and consulting services to market-leading companies including GTE, Microsoft, Motorola, NEC, Nokia and Sony. Earlier this year, OpenTV announced a relationship with EchoStar intended to bring personal video recording to the home with the inclusion of a feature on the OpenTV system that will support hard drive recording. Now with Spyglass, the company will have the ability to develop and integrate Web browsing features into the OpenTV solution to enhance the viewer's interactive television experience. Doug Colbeth, Chairman and Chief Executive Officer of Spyglass, said, ""We are extremely excited about the opportunities that this merger creates for the combined company. Combining two leading providers of interactive television software and services will create an organization with all of the tools to be a worldwide leader in providing applications and services that leverage the content, communications and commerce capabilities of the Internet. The Spyglass Board and I are very proud of the many accomplishments of our highly talented and committed employees and we look forward to continuing this success as part of the newly expanded OpenTV organization."" About OpenTV OpenTV is the leading worldwide provider of software that enables digital interactive television. OpenTV provides a complete end-to-end solution for the development and delivery of interactive services via digital satellite, cable and terrestrial broadcast. OpenTV set-top box software has been shipped with or installed in more than 6.1 million digital set-top boxes worldwide. To date, OpenTV software solutions have been selected by 25 television network operators worldwide, including British Sky Broadcasting (BSkyB) in the United Kingdom, TPS in France, Via Digital in Spain, Senda in Sweden, Stream in Italy and EchoStar's DISH Networkô in the United States. The OpenTV set-top box software is licensed to more than 25 digital set-top box manufacturers, and OpenTV's authoring tools are licensed to more than 100 independent developers and content and service providers. OpenTV is a member of the Digital Video Broadcasting (DVB) project, CableLabs OpenCable initiative, ATSC DASE and JavaTV. OpenTV is a licensee of Personal Javaô from Sun Microsystems. OpenTV is supported by investments from nine leading Internet, broadcast and broadband companies including America Online (NYSE: AOL), EchoStar Communications (NASDAQ: DISH), General Instrument Corporation (NYSE: GIC), Liberty Digital (NASDAQ: LDIG), News Corporation (NYSE: NWS), Time Warner (NYSE: TWX) and Shaw Communications (NYSE: SJR), in addition to Sun Microsystems (NASDAQ: SUNW) and MIH Limited (Nasdaq: MIHL). Worldwide headquarters for OpenTV is located in Mountain View, California, with European operations in Paris, France, and London, England; and offices in Seoul, South Korea; Tokyo, Japan; Beijing, China and Sydney, Australia. Information on OpenTV is available at www.OpenTV.com. About Spyglass Inc. Spyglass is a leading provider of strategic Internet consulting, software and professional services that enable content providers, service operators and device manufacturers to capitalize on the potential of the Internet. Market-leading companies using Spyglass solutions include GTE, Microsoft, Motorola, NEC, Nokia, Sony, Thomson Consumer Electronics, WorldGate and Xerox. Spyglass is headquartered in Naperville, Illinois, and has regional offices in Lexington, Massachusetts; Silicon Valley, California and London, England, along with a wholly owned subsidiary in Tokyo, Japan. Visit http://www.spyglass.com for more information