Related Links
Dilithium Networks sold to OnMobile Global
Published: Tuesday, October 5, 2010 at 12:50 p.m.
Last Modified: Tuesday, October 5, 2010 at 12:50 p.m.
Dilithium Networks, which shut down its Petaluma headquarters and overseas operations last August, has sold its technology to India’s OnMobile Global Limited, the two companies said Tuesday.
Terms of the deal weren’t announced. Dilithium co-founder Marwan Jabri will become the leader of OnMobile’s video business unit.
Dilithium developed new technology that delivered video over wireless networks, but suffered a cash crunch earlier this year when it faced delays in installing its equipment in customers’ overseas networks.
Dilithium closed its global offices and laid off nearly all the staff in Petaluma.
Jabri denied in August that Dilithium had ceased operations, saying it was undergoing “deep restructuring” while it looked for a buyer or a new business model.
On Tuesday, he said Dilithium was happy to be part of Bangalore-based OnMobile. Dilithium’s “technologies and know-how will spark a new era where operators in partnership with OnMobile can offer novel and cutting edge revenue-generating video services powered by the Dilithium video technologies,” he said.
OnMobile officials didn’t respond to an e-mail asking whether any other former Dilithium employees were joining the Bangalore operation. Dilithium had about 75 employees at a research, development and sales center near New Delhi before it closed the facility in August.
It had 50 to 75 workers in Petaluma until this year’s layoffs.
The company was founded in 2001 and had raised about $40 million in venture capital, including $12 million in the past year.
Dilithium sold most of its technology outside the U.S., with network customers in China, Europe, India, Indonesia and the Middle East. It claimed 120 customers in 60 countries.
It was in growth mode earlier this year, introducing “Galaxy,” a technology platform designed to make it faster and simpler for wireless carriers to offer mobile video service.
Video sharing, social networking and smartphone use were driving demand, former CEO Paul Zuber said last November.
But network operators haven’t figured out how to make subscribers pay for the service, causing a delay in its deployment, according to technology analysts.
Dilithium ran short of cash in this year’s second quarter and couldn’t raise additional venture capital.
OnMobile said Dilithium’s advanced “3G” — or third generation — wireless technology will add to its offering of mobile video solutions.
“With Dilithium’s 3G-patented technologies we will continue with a wide range of rich 3G video mobile value-added services that are carrier-grade, field-tested, proven, competitively superior and spectrum cost efficient,” said OnMobile CEO Arvind Rao.
The deal includes more than 175 Dilithium technology patents.
All rights reserved. This copyrighted material may not be re-published without permission. Links are encouraged.