by D.M. Weintraub, CA Press Bureau Member. April 18, 2007.
ZVUE (Nasdaq CM), Handheld Entertainment ($2.535) ZVUE takeover rumors are circulating. Yahoo (YHOO) is the rumored acquirer in the range of $5.50 per share. Currently: $2.60
The acquisition makes sense for Yahoo, following on the heels of Google�s strategy to acquire broadcast providers. The acquisition would bring Yahoo more Internet advertising revenue because it reaches a wider audience through a network of entertainment content sites.
Handheld Entertainment, Inc., a digital media company, provides commercial and user generated video entertainment content to audience on personal computers, handheld devices, and mobile devices. It offers content through YourDailyMedia.com, FunMansion.com, Putfile.com, Dorks.com, ZVUE.com, and UnOriginal.co.uk Web sites, which offer media files, including music videos, news clips, television shows, short films, and feature-length films, as well as rights to additional media files in various genres, including teens, children, and independent films. As of January 2007, the company offered video content to approximately 13.7 million visitors per month through its network of Web sites. It also designs, produces, and sells portable media players in mass markets under ZVUE brand. The company's media players play video files in MP4, AVI, and Windows Media Video with DRM formats, as well as play audio files in MP3 and Windows Media Audio with DRM formats, and display JPEG photo images. Handheld Entertainment sells its media players through retail stores in the United States, as well as through retail store Web sites.