New York, May 04: Motorola Inc. on Monday said it would distribute WorldGate Communications's video phone targeted at high-speed Internet customers, causing WorldGate's shares to more than double.
Motorola's broadband business, which is one of the top suppliers of cable television set-top boxes, will begin distributing the Ojo branded video phone in the fall.
Motorola and WorldGate, which is seeking patent protection for the Ojo phone that lets users see each other when they talk using an Internet line, will also jointly develop future broadband video telephony solutions, the companies said.
Motorola will also make an unspecified prepayment against future product purchases, the companies said.
Cable and telephone companies have begun selling Internet telephone services as a way to offer new features and cheaper phone calls to consumers.
Shares of WorldGate were up $1.41 at $3.04 in late morning trade on Nasdaq, after earlier more than doubling to rise as high as $3.36.
Motorola stock was up 12 cents at $18.30 on the New York Stock Exchange.
Bureau Report
