To widen the scope of the audience for its interactive TV software, OpenTV has gone on a buying spree. The interactive TV platform provider has acquired ACTV Inc. and Wink Communications Inc.
Under the terms of the ACTV stock-for-stock deal, ACTV common stock will be exchanged for a fraction of an OpenTV Class A ordinary share equal to $1.65 divided by the then average market price of the Class A share, under certain conditions. As of Aug. 31, ACTV had roughly $59 million in cash and cash equivalents.
OpenTV will fork over $101 million in cash to Liberty Broadband Interactive Television Inc. for Wink. Liberty did not hold on to Wink for long. The company just completed its $100 million buy of Wink last month. Liberty Broadband is a subsidiary of Liberty Media Corp. and in May, Liberty Media scooped up a controlling interest in OpenTV for $185 million in cash and stock. The Wink deal is not subject to shareholder or regulatory approval, and is expected to close in the next few weeks.
The acquisitions will give OpenTV some much needed financial muscle. Once the transactions are complete, OpenTV will have roughly $160 million in cash, no debt and a worldwide footprint in excess of 35 million homes with one or more of its iTV products or services, according to the company.
"ACTV and Wink have invested significant amounts of capital in developing cutting-edge technology to enable targeted advertising, interactive commerce, enhanced and multiplexed programming and related technologies and other services offered primarily to the U.S. cable and satellite industry," OpenTV Chairman Peter Boylan said in a statement. "Integrating these technologies with OpenTV's middleware business and international distribution should enable us to offer a much broader array of products and services to the global pay television industry," he said. Boylan also is CEO of Liberty Broadband.