iBEAM Acquires Rights Management Company for $3 Million

iBEAM (http://www.ibeam.com) said it acquired Server-Side Technologies, Inc., a provider of digital media hosting and rights management services.

The acquisition was valued at approximately $3 million, and accounted for as a purchase transaction.

The addition of DRM means iBEAM can offer providres a solution to host, securely distribute streaming and downloadable content.Current Server-Side customers includes Liquid Audio, CDNOW, Spinner.com/Winamp.com, RioPort, Radiofree Virgin, Interscope Records, Filmspeed, LAUNCH.com, Atlantic Records, Music.com, MusicChoice, Paramount Digital Entertainment, Raveworld.net and Rhythm Radio.

"Working with such a forward-thinking company as Server-Side Technologies will expand our product line greatly by positioning us to serve every need of the entertainment industry," said Peter Desnoes, president and CEO of iBEAM. "Furthermore, this acquisition galvanizes our leadership position in the entertainment and music market by introducing us to Server-Side's impressive customer list."

This widens iBEAM's service offerings from hosting, delivery, ad insertions and now DRM.

Server-Side Technologies was founded in 1999 as a provider of digital protection and hosting solutions. It uses Microsoft's Windows Media Rights Manager technologies.