RealNetworks Acquires Aegisoft

RealNetworks announced it acquired secure digital media company, Aegisoft (www.aegisoftcorp.com), for about $12 million in stock.

Rockville, MD-based Aegisoft's management and technical team will join RealNetworks in Seattle.

According to Phil Leigh, digital media analyst at Raymond James Financial, this is a small, but important acquisition for RealNetworks. "RealNetworks wanted the technology," he said, "to get serious about protected digital media. Expect to see them deliver licensed digital media music first, then films."

"Together we will accelerate the creation of secure Internet media delivery systems and enable a new mass medium," said Ji Shen, CEO of Aegisoft Corp.

Leigh also speculated that RealNetworks may use Aegisoft's technology to protect audio and video content from its Goldpass subscription service.

"RealNetworks has always worked to help our partners protect their intellectual property," said Brad Hefta-Gaub, director of development, Media Systems, RealNetworks. "Through our work with the team from Aegisoft, we will continue to innovate in ways that support security throughout RealSystem."

RealNetworks is paying Aegisoft shareholders approximately 1,221,305 shares of its common stock. In addition, former equity holders of Aegisoft have the future right to receive up to 300,000 additional shares of RealNetworks common stock.