Sun to Buy Wireless Content Business
Jun 27, 2003
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Sun Microsystems, the U.S.-based computer systems company, has moved further into the digital media arena by agreeing to buy Pixo, a small privately-held group that develops software to manage the delivery of content to mobile devices. Terms of the all-cash aquisition were not disclosed. Pixo's software lets network operators and companies manage the distribution of games, music videos and corporate information to cell phones and other mobile devices. The company has also developed a billing platform for all types of wireless content regardless of where that content is physically located. Sun said the Pixo acquisition would help accelerate the adoption of its Java software. Java is already embedded on mobile phones in Europe and Asia and enables software companies to write applications that can be played on any kind of Java-enabled phone. Sun is one of several software companies working to develop technology to deliver games, news clips, music videos, sport highlights and movie trailers to wireless phone subscribers, primarily in Europe and Asia. Network bandwidth costs are currently seen as too high to allow widespread adoption of these new services, but industry insiders believe data transmission costs could be low enough within a few years. Sun said it would fold Pixo into its software unit, headed by Jonathan Schwartz. The acquisition, subject to customary closing conditions, is expected to be completed in the first quarter of Sun's 2004 fiscal year, which begins on July 1. (Reuters)

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