MK Capital has sponsored a spinout of P2P multimedia delivery company Kontiki from VeriSign Inc. No financial terms were disclosed. VeriSign bought Kontiki in 2006 from a group of VC firms that included MK Capital. That deal was valued at $62 million, and followed over $42 million in funding.
Kontiki, the leading provider of managed peer-assisted delivery for high-quality video and digital content, announced today that it has completed the anticipated divestiture from VeriSign, Inc. As a result, the assets previously comprising VeriSign's Broadband Content Services business unit will be re-launched as Kontiki Inc., with funding from MK Capital.
The Kontiki Delivery Management System is a patented peer-assisted content delivery technology which enables the delivery of high quality video and other rich media securely and efficiently at very large scale. Built on an award-winning peer-assisted content delivery and management platform, Kontiki is used by Fortune 500 companies for its massive scalability and network efficiency.
Originally founded in 2000 in
“Throughout our time as part of VeriSign, we remained committed to the development and support of the Kontiki award winning peer-assisted delivery technology,” said Eric Armstrong, President of Kontiki. “The Kontiki technology is eight years proven in the marketplace and we are proud to claim some of the most prominent enterprises and consumer media companies in the world as our long-standing customers.”
“We are very excited to be financing the expansion of Kontiki,” said Mark Koulogeorge, principal, MK Capital. “The Company has a unique and tested peer-to-peer (P2P) technology which addresses the need to efficiently distribute video over the internet and private networks. The new generation of internet users will demand video content in order to be engaged. As the use of video as a communication tool continues to expand, Kontiki's technology will be increasingly strategic to corporations worldwide.”
VeriSign announced its intention to focus on core Internet infrastructure related businesses in November 2007. As a result, the company is implementing its strategy to divest of a number of businesses.
Kontiki will be headquartered in
Kontiki's secure, scalable, and legitimate P2P delivery platform powers the world's largest media companies broadband video on-demand download services including the BBC iPlayer, and BSkyB's Sky Anytime on PC service, in the