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2010

RealNetworks Purchases Varia, Combines With Cloud Push

January 5, 2010 0

New York — RealNetworks has scooped up Seattle startup Varia Mobile, hinting at top-secret cloud computing project that the Varia engineering team will be working on at Real, according to TechFlash.

Although, spokesman Bill Hankes confirmed the purchase today, though he refused to offer more details as to the mysterious venture that it is rumored that the software giant will take mobile and desktop features into the cloud.

Varia Mobile claims its technology services “provides immediate publishing, integration and deployment of Web 2.0 desktop services directly to mobile devices via a portal,” making “digital media available to consumers whenever and wherever they want”. As an example, it claims that it can be used to wirelessly sync content, like music, with a media service or storefront so that a user does not have to sync their phone directly with their PC.

RealNetworks is also appointing Varia Mobile’s CEO John McQueen as its vice president of business and development and OEM, a fresh position conceived by the company. He will report to Hank Skorny — whose appointment last October as senior vice president, media cloud computing and services has kindled rumors of a secretive operation inside the company.

The two companies have previously operated together on a Wi-Fi empowered MP3 player that was integrated into RealNetwork’s Rhapsody music service, but was axed mid-2009.

RealNetworks bought a small share in Varia last year and finalized the full purchase last week. RealNetworks is not specifying exactly how it plans to incorporate Varia.

“We are not going to comment beyond recognizing the work done in the past,” Hankes told TechFlash. “We are going to our powder dry for future announcements.”

Just six months ago, Varia was forced to layoff portions of its staff and deserted efforts to sell a WiFi-enabled MP3 player called the Ibiza. That device included the Rhapsody music service from RealNetworks and sold for around $330. Eight employees of Varia will be joining RealNetworks.

RealNetworks has lately been incorporating the Rhapsody music service into mobile devices, including an app for Apple Inc.’s iPhone and Google Inc.’s Android devices this year.

Financial terms of the purchase are not being disclosed. Varia was released from Tegic Communications in September 2007 after that firm was sold by AOL to Nuance Communications.