DoCoMo bids for Net Mobile to boost content strategy
Published: 14 September, 2009
READ MORE: Metrics | NTT DoCoMo
NTT DoCoMo has made no secret of its need to diversify its business to compensate for saturated markets and rising competition at home, and it is taking a multi-pronged path. It is investing in joint ventures in developing economies like India (and possibly developed ones like the US, with a full MVNO on the cards), and is also expanding its activities in mobile content, for home and overseas customers. Its latest move is to mount a bid for German mobile content distribution firm, Net Mobile.
All this could create a rerun - modified for the changed consumer expectations of 2009 - of DoCoMo's attempt, earlier in the decade, to establish its iMode content/web platform as a de facto international standard. That failed, mainly because iMode, though groundbreaking, was overtaken by other technologies.
But few carriers understand advanced web services and rich media like DoCoMo, and it makes sense for it to build up multimedia platforms that can be offered directly in new markets, or licensed to partners - though the Japanese carrier would do well not to try to impose its own brand this time.
In July, it acquired a reported $45.5m for 35% of mobile video company PacketVideo and now it is to bid to take over Net Mobile, offering €6.35 a share, a 34% premium on the Thursday closing price, and 54% above its average price of the past three months. The supervisory and management boards of Net Mobile are supporting the offer.
"Net Mobile's technology and European presence are major plus points for DoCoMo, which is strengthening the foundation of its mobile platform business overseas," said Masatoshi Suzuki, senior EVP at DoCoMo, in a statement.
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