Samsung Electronics Co., the world's largest mobile phone and memory chip
manufacturer, said Thursday that it has acquired a U.S. cloud service provider
to strengthen its mobile entertainment business.
Samsung said it has
taken over California-based mSpot Inc. that provides music, movies and radio
content to mobile users. The U.S. company located in Palo Alto also has ties
with many major telecommunication service providers in the United States that
could benefit Samsung.
Samsung said that it has acquired all of mSpot
Inc.'s technology, assets and personnel. Financial terms of the deal were not
disclosed.
"The acquisition will permit Samsung to enhance its
cloud-based streaming solution clout and build up the company's entertainment
services for mobile devices," Samsung said. "mSpot could act as a conduit to
permit competitive local contents to reach a wider global market."
The
latest move comes as Samsung's chief rival Apple Inc. has set up its own cloud
service iCloud.
Industry insiders speculated that Samsung paid around
10 billion won (US$8.74 million) for the cloud service company. They said that
in the long run, the tech giant may create its own cloud-streaming service to
expand the scope of applications it can give to consumers who buy its mobile
devices such as the Galaxy series phones.