Motorola’s $1.15 a share offer is a far cry from the day when Tut held an IPO in 1999 and excitement at the prospects for TV over broadband saw its shares soar by 210% to $60.50 and the first day’s trading. At its peak of $76 shortly after, Tut was worth $880m.
Now Tut’s technology will be folded into Motorola’s digital video delivery systems, which are designed to help service providers deploy video services over IP, ATM, or RF-based network architectures. Motorola said it has deployed 2,060 digital video networks and over 50 million digital video set-top boxes.
In 2005, Tut had to abandon the $24.1m purchase of CoSine Communications Inc after a collapse in its share price. The Motorola deal will raise hopes of a new deal for Cosine, which languishes on the over-the-counter market with a value of $32.8m.
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