The fine print of the $350 million deal is that it is pending approval from WiderThan shareholders and Korean Fair Trade Commission, which is normal. Some more details in WiderThan SEC filings here. If the acquisition doesn’t go through for some reason, there’s a $13 million termination fee.
Some more details from the conference call transcript, filed with SEC: WiderThan has approximately $90 million of cash and cash equivalent resulting gin a net purchase price of approximately $260 million. At the end of our second quarter RealNetworks had cash, net of our debt, of approximately $669 million. As a result, the net purchase price of this acquisition represents less than 40% of our net cash at June 30th. RNWK expects to receive up to $185 million in additional payments related to its agreements with Microsoft through Q1 2007.
—This is our first public-to-public transaction. It’s the largest acquisition we’ve done in our history.
—You’re looking at a combined company that, based on current run rate, is about $0.5 billion in revenue.
—During Q206, we have about 62% of the revenue from SK Telecom..we believe that our relationship with SK Telecom will not be changed.