Six months after Move Networks Inc. hung a for-sale sign, a subsidiary of Charlie Ergen's EchoStar Corp. LLC (Nasdaq: SATS) set-top and tech spinoff snapped up the struggling Internet video technology vendor and adaptive streaming pioneer.
EchoStar Advanced Technologies LLC said Thursday that it acquired the patent portfolio and other assets of Utah-based Move, which supplies the video player for Comcast Corp. (Nasdaq: CMCSA, CMCSK)'s Fancast Xfinity TV site. While Move counts the largest U.S. cable MSO as a customer and as one of its early investors, the company saw several management changes and staff layoffs since it was founded in 2007.
Why this matters The deal gives EchoStar a key chip in the multiplatform video distribution game, and Move's streaming video technology assets fit well with EchoStar's portfolio, which includes place-shifting technology company Sling Media Inc.
Move's adaptive bit-rate streaming video technology could help EchoStar score deals to supply "TV Everywhere" technology to cable MSOs as well as other pay-TV providers, including corporate cousin Dish Network Corp. (Nasdaq: DISH). However, competition has been heated ever since Move's unique position in the market changed when Microsoft Corp. (Nasdaq: MSFT) and Adobe Systems Inc. (Nasdaq: ADBE) developed adaptive streaming platforms of their own.
EchoStar and Move didn't disclose terms of the agreement, or what the deal means for Move's remaining personnel.