Mountain View, California-based Pinnacle Systems Inc has agreed to acquire Hewlett-Packard Co’s broadcast video server business for $40m in cash and stock. HP’s video communications division, part of the test and measurement side of the business, includes HP’s MediaStream Broadcast Server and Disk Recorder products. HP says the business has a better chance of success within Pinnacle, as its focus is the professional video industry, and that the recently launched MediaStream 700 and 1600 video servers complement Pinnacle’s Thunder and iThunder video servers.
HP launched its video communications business back in 1992, and claims to have been first to market with an MPEG-based Broadcast server. The first HP Broadcast Video Server went on air in 1994. HP says it will retain an equity stake in Pinnacle and work with it on the system transition.
