March 20, 2006

VeriSign continued its spending spree, inking an agreement to shell out $250 million in cash for mobile messaging and content services provider m-Qube Inc.

M-Qube powers mobile storefronts and marketing campaigns for media companies and major brands.

Some include Sony Pictures, Warner Music Group, Reuters, GQ and Major League Baseball.

The 200-employee developer is based in Watertown, Mass.

The news marks the biggest move yet this year for VeriSign, which is aggressively pursuing other avenues in wireless to offset disappointing revenues from its content aggregation business.

American Technology Research analyst Albert Lin earlier this month said the company’s Jamster and Jamba businesses were “looking like a disaster” due to declining profits from ringtones.

VeriSign bought Austrian wireless applications provider 3united Mobile Solutions for $67 million in February, and last week agreed to buy Kontiki, a California company that makes delivery systems for high-quality video over broadband, for $62 million.

The announcement had little impact on Wall Street, however. VeriSign stock inched upward on the news, climbing 12 cents to $23.34 by mid-day.

Source: RCR