Williams Communications (NYSE: WCG), a provider of broadband services for bandwidth-centric customers, announced it has entered into a strategic partnership with webcasting and streaming media pioneer iBEAM Broadcasting Corp., a provider of streaming communications solutions. The alliance will leverage Williams Communications' broadband media services infrastructure and customer relationships with top-tier media and entertainment companies, as well as drive traffic to Williams Communications' 33,000-mile fiber-optic network.
Under the terms of the agreement, Williams Communications will invest $20 million in cash and $10 million in services in iBEAM in exchange for convertible preferred stock representing approximately a 49 percent ownership of the company. In addition, Williams Communications will provide iBEAM with an expanded set of telecommunications and broadband media services and become their preferred provider of IP transit services. Allen & Company acted as financial advisor to Williams Communications in the transaction. This agreement builds on the company's existing relationship that began in January 2000 in which Williams Communications would provide iBEAM with satellite and fiber transmission capabilities for streaming media services.
IBEAM will continue developing and delivering quality streaming products and services to its hundreds of enterprise and entertainment clients. These services feature Activecast, iBEAM's interactive webcasting service, and a broad set of advanced streaming applications including ad insertion, syndication, digital rights management, and pay-per-view. All of iBEAM's services are tightly integrated with the company's Intelligent Distribution Network optimized for high quality audio and video stream delivery.
Through its Vyvx Broadband Media unit, Williams Communications has 12 years of experience gathering and distributing "mission-critical" live and non-live content for the media and entertainment industries. Its MediaXtranet platform expands on its broadcast distribution capabilities and leverages its connectivity and infrastructure for broadband media applications that include digital asset management, content gathering and distribution utilizing streaming and file-based formats.
Williams Communications showcased its MediaXtranet capabilities last November when it provided a combined fiber-optic and satellite delivery, in a digital file format, of the Miramax film "Bounce" from Miramax Studios in Los Angeles to the AMC Empire 25 Theater in New York City. Williams Communications provided transmission services, network operations and monitoring services for the event, which was the first end-to-end combined fiber and satellite digital delivery of a major motion picture.
About Williams Communications Group, Inc.:
Based in Tulsa, Okla., Williams Communications Group, Inc., is a broadband network services provider focused on the needs of bandwidth-centric customers. For more information, visit www.williamscommunications.com.