Seattle, WA ? November 20, 2002 ? Loudeye Corp. (Nasdaq: LOUD), a leading provider of Webcasting and digital media services, today announced the acquisition of privately-held Streampipe, a leading provider of enterprise Webcasting technology and services. The acquisition positions Loudeye as one of the two largest Webcasting service providers in the industry with more than 400 customers and a combined reputation for reliable and intuitive global Webcasting solutions.
Streampipe (www.streampipe.com), founded in 1992 with offices in Ardsley, New York, and Washington D.C., provides live and on-demand Webcasting services for conferences, corporate communications, product launches and training. Streampipe serves more than 80 enterprise customers, including many leading technology, retailer and consulting companies and several government agencies.
The combination of Streampipe and Loudeye?s global Enterprise Communication division will offer customers the leading suite of Webcasting solutions in the industry. The acquisition expands Loudeye?s customer base and provides a broader reach and presence in new channels such as the government market. Streampipe currently provides services to many federal and local government agencies from its Washington D.C. operations, benefiting from a local sales presence and a longstanding U.S. General Services Administration (?GSA?) contract listing. Additionally, the acquisition extends Loudeye?s Webcasting solution platform to include new proprietary features such as closed captioning, video mining and more flexible tools for reporting and managing events.
Once the merger integration is complete, anticipated to be some time in the first quarter of 2003, Loudeye estimates Streampipe will contribute as much as $1 million in incremental quarterly revenue on a cash flow positive basis.
?Loudeye and Streampipe both approach enterprise communications with a focus on strong customer service, reliable technology, intuitive applications and a commitment to solving business communication challenges through Webcasting,? said John Baker, Loudeye?s chairman and chief executive officer. ?We anticipate that this powerful combination of Webcasting expertise, infrastructure, customer base and sales pipeline will accelerate our penetration of Fortune 1000 accounts and vertical markets with innovative, industry leading business communications solutions.?
Pursuant to the terms of the definitive merger agreement, Loudeye acquired 100% of the stock of TT Holding Corp., parent of Technology Education Network, Inc., which markets itself as Streampipe, for 7.9 million unregistered shares of common stock and a $1.1 million unsecured note due January 1, 2004, which is redeemable in cash or stock at Loudeye?s election, pursuant to certain conditions.
As part of the transaction, Streampipe's former Chairman, James R. Kuster, will fill a currently vacant Class II seat on Loudeye?s board of directors. Mr. Kuster is a managing director of Crest Communications Holdings LLP, a private equity firm and the major shareholder of Streampipe. He also serves on the boards of Wire One Technologies (NASDAQ: WONE) and three private companies. Prior to joining Crest in 1999, Mr. Kuster was Vice President for Corporate Development of Reciprocal, Inc., and worked in the Media and Telecommunications group of Chase Securities from 1986 until 1999, most recently as Managing Director.
"The combination of Streampipe and Loudeye creates a strong opportunity for our shareholders to participate in its exciting future," said Kuster. "We expect widespread adoption of Webcasting as a mainstream tool for corporate communications in the months ahead and that this transaction will position us as the clear market leader for these services."
About Loudeye Corp.
Loudeye is a leading provider of digital media and Webcasting services for the enterprise and entertainment markets. Loudeye's technical infrastructure and proprietary applications deliver solutions for global enterprise Webcasting, online music distribution and samples, online radio, and media restoration. For more information, visit www.loudeye.com.