Motorola To Purchase Dreampark

A leading mobile phone manufacturer, Motorola Mobility Holdings, Inc. (MMI - Analyst Report) plans to buy Swedish television software manufacturer, Dreampark.  The deal is expected to be completed by the second half of 2011 and the terms of the deal have not been disclosed. Motorola Mobility expects to incorporate Dreampark into its Converged Experience business following the closure of the deal.

Dreampark is one of the largest providers of Middleware support to cable, terrestrial or IPTV mainly in the European region. Such softwares support 1) Crystal-clear graphics and high-quality user interface in HD resolution, 2) Much faster and more responsive performance than clients running on a similar hardware, 3) Impressive graphics animations with flexibility in administration and customization of TV portals. Dreampark offers these services through Dreamgallery. Hence, the acquisition will help Motorola to provide more user-friendly support to its clients.

Recently, Motorola launched their most popular product called Motorola XOOM tablet series, which is expected to compete with Apple’s (APPL) iPad. Thus, we believe that the Dreampark acquisition will help Motorola Mobility to offer better IPTV services to its newly-launched product.   

Earlier this week, Motorola and Polycom (PLCM - Analyst Report) announced a partnership to provide video communication service for Motrola’s Xoom tablet.  The added feature will give an extra edge to Motorola Mobility over its peers.

Earlier, they had acquired a privately-owned company called Zecter. The acquisition will enhance Motorola Mobility’s innovative capacity with synchronization and streaming technologies for on-demand mobile digital contents. The Dreampark acquisition will be their fifth purchase in the recent times.

With the advent of 3G and 4G networks, the demand for IPTV is expected to increase in the coming years. Motorola Mobility, in order to retain its market share and to stay ahead of its competitors, needs to upgrade itself regularly.

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