(By Balachander) UTStarcom Holdings Corp. (NASDAQ: UTSI) said it has acquired a significant minority stake in aioTV Inc., a cloud-based video aggregation and distribution platform.
The deal gives UTStarcom a 44 percent stake in aioTV, making it the largest single shareholder in the U.S.-based company.
The Chinese provider of Internet Protocol (IP)-based network services said the acquisition will boost 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.
"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," commented Michael Earle, CEO of aioTV.
[Related -Utstarcom (UTSI) Closes Sale Of IPTV Business; New CEO Assumes Role]
aioTV has developed the first middleware platform that 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.
UTSI shares ended at $1.03 on Tuesday.