The combined resources of the two companies will broaden TANDBERG Television's market offering and enable it to continue to build its high margin software business. Earlier this year, TANDBERG Television completed the acquisition of N2 Broadband, North America's leading provider of open platform on-demand solutions. With today's announcement, the combined company is strongly positioned to lead the new television era by providing network operators with the highest quality digital TV solutions including HDTV, video on demand, advertising on-demand, IPTV, and interactive TV applications, all of which are designed to maximize consumer appeal and generate increased return on network investment.
GPI is a recognized leader in interactive television technologies and develops and sells products and services that create, manage, and deliver digital and interactive media. The company specializes in high performance interactive television systems used across digital television, the internet, and wireless/mobile networks. GPI serves many of the world's largest media companies, cable and satellite operators, and wireless carriers through five major business lines: Interactive Television, Cable & Satellite, Wireless, Digital Media Security, and Interactive Advertising.
The acquisition propels TANDBERG Television up the media value chain and extends the company's position as a revenue generating partner to operators, content owners and advertisers, as well as a key provider of digital infrastructure technologies for the critical network delivery phase.
"The acquisition of GoldPocket will enable us to significantly expand our presence within existing and new customers. We already have numerous common customers with GPI in the North American market, such as DIRECTV, FOX, NBC, News Corporation and Time Warner. Our traditional relationships are with engineering/technology management who make critical decisions regarding network architectures. The addition of GPI's interactive technology and tools will bring us into the content core where we can assist our customers in deploying interactive applications that have a direct impact on their revenues and consumer appeal," says Eric Cooney, President and CEO of TANDBERG Television.
According to Kagan Research, the market for interactive services across cable, satellite and telco platforms is accelerating. US operator revenues are estimated at $33.6M in 2005, with a forecasted rise of over 20 times to $780M in 2009. In an increasingly complex and crowded media world, content owners are moving to differentiate themselves; advertisers are looking to interactive environments as key to individual targeting and brand engagement; and broadcasters and operators are launching interactive applications across multiple platforms to boost their consumer appeal in a progressively more competitive environment. GPI's interactive media technologies allow constituents at all points of the value chain to turn these challenges into success.
TANDBERG Television has an open systems strategy on which it is building the industry's most comprehensive platform for interactive, on-demand digital TV delivery based on a non-proprietary environment of proven performance. In addition to its world class professional video compression head-end systems and leading open on-demand solutions, TANDBERG Television is now able to provide content owners, operators and advertisers with a non-proprietary environment for the creation and delivery of interactive consumer applications across cable, satellite, telco and mobile platforms.
"We see an increasing opportunity for TANDBERG Television to meet the growing demands from content owners and operators for technology neutrality - a 'Technology Switzerland' for the digital entertainment world. The acquisition of GPI is a further step towards our goal of providing a fully integrated solution that combines the strengths of all our technologies from the head-end through to the consumer interface, with the openness to allow the use of standards based equipment and applications from other vendors. This gives content owners and operators increased flexibility and choice and protects the service provider and the consumer from proprietary vendor lock-in - it's a total win-win," adds Cooney.
The acquisition further strengthens TANDBERG Television's North American presence and builds on the company's merger with N2 Broadband earlier this year. It also provides GPI solutions with an instant route to international markets through TANDBERG Television's extensive direct and partner sales organizations in Africa, Asia Pacific, Europe and the Middle East, opening up more than 75 countries to GPI's solutions and consultancy services. With the acquisition, TANDBERG Television will now have offices in four of the most strategic cities in the U.S. media/distribution industry; Atlanta, GA; Denver, CO; Los Angeles, CA; and New York City.
"TANDBERG Television is clearly a global leader in the professional video compression and on-demand entertainment markets. The company's world wide presence and its increasing success in North America provide an ideal platform on which to build GoldPocket's lead in the growing interactive space. Broadcasters and operators around the world are looking for reliable solutions to help them make the most of these new interactive opportunities and I believe that TANDBERG Television has the credibility, the track record in digital TV and the open technology to enable it to be the partner of choice on this next stage of the digital entertainment journey," says Scott Newnam, President of GoldPocket Interactive, Inc.
GoldPocket employs 85 people based in Los Angeles and will maintain its location in the heart of the television industry. The company has an experienced management and software development team with expertise in technology, entertainment, strategy, and finance. With a 5 year track record of strong software and consultancy sales growth resulting in an estimated $12M in revenue for FY 2005, Gold Pocket has successfully established a strong foundation in the North American interactive television market.
About TANDBERG Television
TANDBERG Television (Oslo:TAT.OL) designs and develops professional systems that enable new business models in the media and entertainment market through the delivery of high quality live digital video and on-demand content. The company provides open standards-based technology solutions, systems integration, support and monitoring through its sales and 24-hour support operations in the Americas, Asia, Australia and Europe. TANDBERG Television's customers include many of the major broadcasters, network operators, telephone companies, cable operators and content owners around the world. For more information visit: http://www.tandbergtv.com