3Com buys web radio company

3com has acquired Kerbango, which develops internet radio listening devices, to boost its home networking initiative.

Already an early investor in the startup, 3Com will purchase the unspecified remaining shares of Kerbango for $80m.

Kerbango is developing a standalone internet radio device which enables listeners to tune into 5,000 web radio stations. Customers can identify the stations they want to listen to by using Kerbango's Tuning Service radio directory that categorises channels into music, news, talk and sports. Consumers can also connect the device to the web via their existing ISP accounts.

The device is being demonstrated at this week's PC Expo show and 3Com plans to ship the product under the 3Com banner later this summer.

Jon Fitch, Kerbango's chief executive, said: "Joining 3Com is like strapping a booster rocket to Kerbango. 3Com has the manufacturing, distribution and strategic partnerships, as well as a strong brand with consumers, which we intend to leverage immediately."

3Com's ambitions in the consumer and home networking market began when it started shipping cable and digital subscriber line modems a number of years ago. It now sells a range of home networking gateway tools and PC web cameras.

Later this year, 3Com is expected to ship its own internet access appliance that will enable consumers to send emails and run family-oriented applications such as calendaring. Kerbango's web radio functions could also be added to the device, said Julie Schimer, vice president and general manager of 3Com's residential connectivity group.

She said: "3Com will deliver internet audio in a variety of formats and in other devices, not just radio." The two companies are also keen to license Kerbango's technology to third parties.