Skip to main content

EchoStar Paid $45 Million for Move Networks

Reading through EchoStar’s quarterly 10-Q filing this week — yes, it’s what I do for fun — I saw that the company disclosed that it paid $45 million for the assets of Move Networks, a developer of adaptive bit-rate IP video streaming technology (see EchoStar Acquires Move Networks Assets).

It was losing deal for Move Networks’ investors, which had been shopping it around for an asking price of upwards of $150 million. Move had raised about $70 million from investors including Comcast, Cisco, Microsoft, Steamboat Ventures, Hummer Winblad Venture Partners, Benchmark Capital and Televisa.

Move pioneered the adaptive bit-rate streaming concept, and secured early customers including ABC (see ABC Clicks On Online HDTV Test), but it lost its advantage after Adobe and Microsoft incorporate the capability into their video-streaming platforms (see Move Networks Cuts Staff, Preps For Possible Sale).

About 25 Move employees joined EchoStar as a result of the deal.

In the 10-Q, EchoStar said that on Dec. 31, 2010, it acquired certain assets of Move Networks for a total of $44.991 million, of which $2.25 million was placed into escrow “for certain potential contingencies.” EchoStar didn’t detail what those contingencies were.

Here’s how EchoStar accounted for the Move Networks deal:

In-process R&D: $26,482,000

Property and equipment: $7,213,000

Goodwill: $6,457,000

Other intangibles: $4,271,000

Accounts receivable: $535,000

Other current: $33,000


Follow me on Twitter: @xpangler