Washington, DC - 12/14/06
Â IPTV and advanced media services companies Auroras Entertainment, LLC and Broadstream Communications, Inc., have signed a Letter of Intent to merge following shareholder approval.
The name of the combined entity will be Avail Media, Inc. ("Avail"). Ramu Potarazu, formerly COO of Intelsat and now CEO of Broadstream, will become CEO of Avail.
Diane Smith, Auroras' CEO, will become President of Avail. Rounding out the executive team will be Jon Romm - EVP of Sales, Marketing and Business Development; Steve Bukowski - EVP, Integration and Operations; Mike Kazmier - EVP, Technology; and Ben Goux - CFO.
Both Broadstream and Auroras will be wholly owned entities of Avail Media. Ramu Potarazu, a seasoned veteran of the satellite and technology industries, explained, "The combined strength of the two companies is compelling. The advanced media services and IPTV marketplace is challenging, both technically and operationally. The companies saw an opportunity to better meet these challenges and deliver a larger breadth of services to our customers.
"Auroras' MPEG-4 IPTV solution has been deployed to telco and FTTH customers nationwide and their team has developed proprietary technologies that support these new services.
"Broadstream has a robust middleware product, along with strong channel and content partnerships, and a growing customer pipeline. Both companies have a history of working with programmers to meet their concerns for quality and security and the combination of the two companies we feel builds on those strong relationships.
"We're excited about working with programmers and our customers to increase their revenue streams by introducing new network edge and advanced media services."
Broadstream, headquartered in Bellevue, Wash., was founded over three years ago; its shareholders include Pioneer Ventures and Benaroya Capital. Auroras, headquartered in Kalispell, MT, also began operations over three years ago.
Among its shareholders is the Montana communications company, 3 Rivers Communications. Following the merger, the company will relocate its headquarters to Washington, DC, and will maintain technology development and sales offices in Bellevue and Kalispell.
The merger is expected to close early in 2007, commercial services will launch at that time. The service suite ramp will include IP-based VOD, PVR, HDTV, and additional local edge capabilities. Existing customers will see improvements to their service immediately and new enhancements will be ongoing.
Diane Smith described Auroras' enthusiasm for the deal. "The synergies were obvious. Auroras had been solely focused on its IPTV services while Broadstream had begun expanding its focus to the cable and advanced media marketplace.
"We recognized that a merger would allow the combined company to get to market faster and offer a broader array of services to our customers. We are extraordinarily impressed with the Broadstream management team and believe that, by combining the best of both management teams, we'll be better able to scale and stay focused on the right strategies in an area that's advancing rapidly."
Â About Broadstream Communications (www.broadstream.com)
Broadstream Communications, Inc. is the leading provider of managed IPTV network services (IPTV Connect), content management platforms (Bstream) and affiliate rights and marketing support services (Media Services). Broadstream operates an all digital (IP) virtual head-end network and service offering that enables network operators to provide an efficient, cost-effective video service product offering over the economics of self-built head-end systems.Â Additional information can be found at www.broadstream.com.
About Auroras (www.auroras.tv)
About Auroras Entertainment, LLC: Auroras Entertainment provides a combination of services and technologies that enable service providers to deploy entertainment services to their customers over existing IP networks. The Auroras solution offers service providers up to a 90% capital expense reduction over a self-provisioned head-end system. The service includes Digitization and Transport Rights, wholesale Affiliate Rights, a complete Video-On-Demand Component, IP Set Top Boxes, and complete 24/7 on-call and on-site customer support. Additional information can be found at www.auroras.tv.