Samsung Electronics has announced it is acquiring mSpot, Inc., a mobile cloud-based content service provider. The acquisition will provide allow users of Samsung devices to access digital content, including music, video and radio
Though no purchase price was announced, a report in the New York Times cited a source that claimed the company was purchased for $8.8 million. The acquisition will include the full scope of technology, assets and human resources under mSpot. Further transaction were detail not disclosed.
For Samsung, which last week introduced its new flagship smartphone, the Galaxy S III, the deal may allow its users to have access toexpanded cloud-based service.
mSpot is based in Palo Alto, Calif and formed in 2004. It launched its storage locker service in the summer of 2010 before Amazon, Google and iTunes. At MIDEM in 2011, mSpot's storage locker elicited questions over the legality of the service hosting and streaming unlicensed content. mSpot has its own brand services available both in the Android Marketplace or App Store.
In a statement TJ Kang, Senior VP of Samsung Electronics' Media Solution Center said about the acquisition: "mSpot shares our vision to bring a best-in-class cloud and streaming entertainment experience to consumers, and they've backed it up with innovative technical solutions from a great engineering team."
mSpot Chief Executive Officer Daren Tsui said in the same release that "Samsung is unparalleled in terms of global reach and cutting edge devices; with our combined resources, we are looking forward to redefining media consumption across the mobile universe with cloud services."
Last year Samsung Electronics Co., Ltd. had consolidated sales of US$142.2 billion, according to its release. The company employs approximately 190,500 people in 206 offices across 68 countries,