VitalStream Acquires PlayStream

VitalStream Holdings Inc. (www.vitalstream.com), the parent company of VitalStream, Inc., a streaming media solutions and global content delivery network (CDN) provider, today announced that it has acquired the business of PlayStream, LLC, a leading provider of small business streaming media services, headquartered in Seattle, Washington.

"The addition of the PlayStream product line fits perfectly with our strategy of investment and innovation in streaming technologies within our key target markets. Our goal is to leverage acquisitions to bolster our current product offering and customer base," said Philip N. Kaplan, president and COO of VitalStream.

The combination of PlayStream's small business streaming platform with VitalStream's enterprise streaming solutions will provide customers with a comprehensive, scalable solution for delivering their digital media content on the Internet.  

Together, VitalStream and PlayStream will offer an affordable, self-service platform perfectly suited for small and medium-size businesses (SMB), small and home office (SOHO) customers and resellers.

This service will be offered under the PlayStream brand. The automation and self-provisioning elements of the PlayStream platform expand VitalStream's reach, making streaming solutions available to a wider range of users.

Combining PlayStream's six-year track record in the SMB / SOHO market, with VitalStream's engineering and financial strength, uniquely positions VitalStream to capture the opportunity in this emerging market, and in turn, achieves several key objectives in its growth strategy.

"VitalStream's acquisition of PlayStream opens up new account categories and sources of revenue for the company," said Paul Palumbo, research director at AccuStream iMedia Research.

George Grubb, founder of PlayStream, will take on the role of vice president and general manager of the PlayStream division at VitalStream. As a standalone entity during 2004, PlayStream generated positive net income from approximately $1.6 million in revenue, of which more than 90 percent was recurring revenue.

"We're very excited about the emerging opportunities and synergies that are forthcoming as a result of this acquisition," said George Grubb, president and founder of PlayStream.