UTStarcom to Invest in Next Generation Video Platform aioTV
- Company adds to suite of technologies that bolster its rollout of
subscription-based value added media services -
BEIJING, Nov. 14, 2012
BEIJING, Nov. 14, 2012 /PRNewswire/ -- UTStarcom Holdings Corp. ("UTStarcom"
or the "Company") (Nasdaq: UTSI), a leading provider of Broadband equipment
and solutions, today announced that it has acquired a significant minority
stake in aioTV Inc. ("all-in-one TV" or "aioTV"), a leading international
cloud-based video aggregation and distribution platform. The deal gives
UTStarcom access to technology that will bolster its rollout of
subscription-based value added media services, while giving aioTV a partner
with whom to offer its technology in emerging markets in Asia.
A U.S.-based company, aioTV has developed the first middleware platform that
combines conditional access and content management tools for network operators
to aggregate multiple sources of content into a consistent TV-like experience
across connected devices. The technology locates and aggregates Internet and
licensed video content metadata and ultimately delivers a common experience
and content to viewers on a range of connected devices – any device that
supports an HTML5 environment. aioTV currently works with many consumer
electronics makers, cable and telecommunications service providers and
broadcast partners in North America, South America, Europe and the Middle East
to provide their middleware platform to millions of customers.
UTStarcom will look for opportunities to offer aioTV's technology in Asia
where it has relationships with regional cable service providers and
broadcasters. The aioTV platform will allow these operators to package and
control a mixture of web content, licensed linear and video on demand (VOD)
content into a consistent video experience that runs across connected
devices in any language and on any broadband network. In the long-term,
UTStarcom will also look for opportunities to jointly develop new service
offerings with aioTV in collaboration with the Company's other strategic
partners, such as iTV Media.
"We view aioTV as a key strategic investment and expect that it will help us
realize our vision of becoming a leader in providing next generation media
services," said Mr. William Wong, UTStarcom's Chief Executive Officer. "This
is exactly the type of company we want to partner with as we seek to provide a
highly personalized entertainment experience that is available on the devices
that customers are increasingly embedding into their lifestyle."
The transaction gives UTStarcom a 44% stake in aioTV and makes it the largest
single shareholder in the company. In addition, UTStarcom will acquire seats
on aioTV's board of directors. aioTV's management team, led by Michael Earle,
Chief Executive Officer, and Jim Anderson, Chief Operating Officer, will
continue to set and execute aioTV's strategy and product development
"We see emerging markets as some of the most eager adopters of next generation
Internet-delivered video services," said Michael Earle, CEO of aioTV. "This
strategic investment from UTStarcom gives us the platform to meet the shift in
global video consumption and will accelerate our ability to deploy our
technology in some of the fastest growing markets in Asia."
About UTStarcom Holdings Corp.
UTStarcom is a leading provider of Broadband equipment and solutions for cable
and telecom operators. The Company sells its solutions to operators in both
emerging and established telecommunications and cable markets around the
world. UTStarcom enables its customers to rapidly deploy revenue-generating
access services using their existing infrastructure, while providing a
migration path to cost-efficient, end-to-end IP networks.
UTStarcom was founded in 1991 and listed on the NASDAQ in 2000. It has its
operational headquarters in Beijing, China and research and development
operations in China and India. For more information about UTStarcom, visit the
Company's Web site at www.utstar.com.
About aioTV Inc.
aioTV is a next generation video platform that aggregates pools of video
content to deliver a unified rich video experience across connected devices.
The company's aioTV consumer service and flagship business productsaioCloud
and aioProareenablingplatformsfor service providers, consumer electronics
manufactures and media companies designed to curate multiple sources of video
content into a TV-likeexperience for customers to enjoy onmultipledevices.
aioTV aggregates long form video content from the web (OTT) and
licensedcontent(VOD, TV Everywhere VOD,evenlinear channels) into a
consumerexperiencethat looks like TV middleware and runs on iPad, Android
tablets, PC, MAC, Google TV, iPhone, Android phones, Androidsettop boxes and
Amino set top boxes. For more information, visit aio-TV.com.
Safe Harbor Statement
This release includes forward-looking statements, including statements
regarding the Company's transition into a higher growth business and
expectations regarding the accounting for the IPTV divestiture. These
statements are forward-looking in nature and subject to risks and
uncertainties that may cause actual results to differ materially. These
include risks and uncertainties regarding the Company's ability to deliver and
capitalize on the opportunities of the higher growth business, to realize
anticipated benefits of the divestiture, to execute on its business plan and
to manage regulatory matters as well as risk factors identified in its latest
Annual Report on Form 20-F and Current Reports on Form 6-K as filed with the
Securities and Exchange Commission. The Company is in a period of transition
and the conduct of its business is exposed to additional risks as a result.
All forward-looking statements included in this release are based upon
information available to the Company as of the date of this release, which may
change, and UTStarcom assumes no obligation to update any such forward-looking
SOURCE UTStarcom, Inc.
Contact: At UTStarcom Holdings Corp. - Ms. Jing Ou-Yang, +86-10-8520-5153, or
email@example.com; or at FTI Consulting, Inc. - Ms. May Shen (Beijing),
+86-10-8591-1951, or May.Shen@fticonsulting.com, or Mr. Daniel DelRe (Hong
Kong), +852-3768-4547, or Daniel.DelRe@fticonsulting.com, or Mr. Eric Boyriven
(New York), +1-212-850-5671, or Eric.Boyriven@fticonsulting.com, all for
UTStarcom; or at aioTV Inc. - Mr. Jim Anderson, +1-720-440-8086, or
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