Microsoft buys Musiwave for $46M

Openwave Systems Inc. finally found a buyer for Musiwave, selling the mobile music business to Microsoft Corp.
Microsoft will spend $46 million in cash for Musiwave and assume roughly $4 million of the Paris-based business’s net debt. The software giant earlier this week acquired the rights to buy Musiwave in an effort to expand its mobile content relationships and build its wireless operations in Europe.
Openwave purchased Musiwave in 2005 for $120 million, but the buffeted company wrote off the subsidiary in August amid declining revenues and the loss of several key executives.
“Musiwave’s strong customer relationships, superior quality of services and leadership position in mobile music were attractive to Microsoft and contributed to the ultimate purchase price,” said Openwave CEO Robert Vrij.
Shares of Openwave lost more than 3% following the announcement, falling to a 52-week low of $2.84. Shares of Microsoft were essentially unchanged following the news.