SAN DIEGO, USA: NextWave Wireless Inc. announced that DOCOMO has acquired a 35 percent equity stake in its subsidiary PacketVideo, a pioneer in wireless and digital home multimedia software and service applications, for $45.5 million.
Net proceeds from the transaction will be applied to redeem a portion of NextWave’s Senior Secured Notes, due July 2010.
As part of the transaction, DOCOMO was granted certain rights in the event of future transfers of PacketVideo stock or assets, preemptive rights in the event of certain issuances of PacketVideo stock, and a call option exercisable under certain conditions to purchase the remaining shares of PacketVideo at an appraised value.
In addition, DOCOMO will have certain governance and consent rights applicable to the operations of PacketVideo. In order to facilitate the DOCOMO investment, NextWave’s noteholders provided certain waivers, including a release of PacketVideo’s guaranty of NextWave indebtedness.
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