NextWave Closes Sale of PacketVideo to NTT DOCOMO
SAN DIEGO--(BUSINESS WIRE)-- NextWave Wireless Inc. (OTCQB: WAVE) (the “Company”) today announced the closing of the sale of its remaining 65 percent equity interest in PacketVideo Corporation (“PacketVideo”) to NTT DOCOMO, INC. (“DOCOMO”) for US $111.6 million. DOCOMO has previously acquired a 35 percent stake in PacketVideo from the Company in July 2009. Upon the closing of the transaction, PacketVideo became a wholly owned subsidiary of DOCOMO.
The transaction resulted in estimated net cash proceeds of approximately $106.5 million, after deduction of estimated expenses for the transaction, of which approximately $94.0 million is being applied to retire principal and accrued interest on the Company’s Senior Secured First Lien Notes pursuant to its secured note agreements, and approximately $12.5 million is being retained by the Company to fund its working capital needs.
PacketVideo is a market leader in mobile phone-based multimedia solutions and develops enterprise technologies that have been widely adopted by mobile operators and device manufacturers in North America and Europe. PacketVideo also provides solutions that allow PCs to share music, photos and video content with TVs, video recorders and other consumer electronics.
About NextWave Wireless
NextWave Wireless Inc. is a wireless technology company that manages and maintains worldwide wireless spectrum licenses.
Additional Information
This press release contains “forward-looking statements” for purposes of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. There can be no assurances that forward-looking statements will be achieved. Actual events or results could differ materially from the events or results predicted by such statements. Important factors that could cause actual events or results to differ materially are discussed in greater detail in the filings of NextWave with the Securities and Exchange Commission. All such documents are available through the SEC’s website at www.sec.gov. NextWave makes no commitment to update any forward-looking statements in order to reflect subsequent changes in events or circumstances except as may be required pursuant to applicable law.
CONTACT:
NextWave Wireless Investor Relations
NextWave Wireless
Francis J. Harding, Chief Financial Officer
858-731-5642
investinfo@nextwave.com
or
NextWave Wireless Public Relations
Ruder Finn, Inc.
Jeff Seedman, 310-882-4009
seedmanj@ruderfinn.com
KEYWORDS: United States North America California
INDUSTRY KEYWORDS: Technology Consumer Electronics Hardware Audio/Video Telecommunications Mobile/Wireless
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