• by Gavin O'Malley  @mp_gavin, March 14, 2006

As broadband video markets go sky-high, VeriSign announced plans on Monday to acquire the broadband content services firm Kontiki for $62 million. Kontiki--which employs peer-to-peer technology to deliver large amounts of digital content over the Web--has worked with VeriSign since 2002.

Kontiki handles video distribution for such heavy hitters as News Corp.'s Sky TV, which announced plans in January to make over 200 movies available to its eight million U.K. subscribers at no additional charge using Kontiki. Other companies that currently rely on Kontiki's technology to serve consumers video include AOL and Verizon.

Kontiki will help VeriSign deliver video to personal computers, television sets, and portable devices, while also adding to its mobile offerings, said Jeff Treuhaft, VeriSign's senior vice president for digital content services.

"People are going to expect to get different content brands through a single pipe onto different devices," said Treuhaft.

Kontiki's breed of technology is becoming increasingly popular among content publishers and owners because it allows them to distribute high-definition video using a system that protects content and distributor rights for a reasonable cost.

The transaction is expected to close in the first quarter, with Kontiki and its staff of 32 employees becoming part of VeriSign's communication services business division.

VeriSign on Monday also said it had completed the acquisition of 3united Mobile Solutions for about $65.5 million, which specializes in mobile applications.