Berlin-based , which is known as in the US, will be merged with Mobizzo, which sells video clips of Fox TV shows, dubbed "mobisodes", and additional mobile phone content, but the company will continue to trade under the name Jamba.
News Corp's mobile entertainment executive Lucy Hood will be tasked with overseeing the venture, which should ensure that the company becomes a major presence in the European market, where potential losses at Mobizzo will be offset by Jamba's profitability.
The deal will mean that consumers will be able to buy content from a range of broadcasters, including wallpaper, ringtones and clips from 'The Simpsons', for a yet to be decided monthly subscription charge, and also through , which News Corp bought last year for $580m.
The success of hit ringtone 'Crazy Frog' made Jamba an estimated $500m last year. However, 2006 profits are not expected to be as high, which VeriSign chief executive Stratton Sclavos said was due to the "declining popularity" of 'Crazy Frog'.
VeriSign said it was confident that the deal with News Corp would prompt a second phase of growth for the company.
Peter Chernin, president and chief operating officer at News Corp, explained: "What we bring to the party is a relentless and religious focus on the consumer."
Chernin described mobile phones as "the largest advertising platform that exists. We'll be giving a lot more thought on how to work closely with major advertisers and marketing companies".
However, despite the optimism of News Corp, many consumers do not yet own mobile phones capable of streaming videos, particularly in the US, where according to Jupiter Research, only 11% of American handsets are capable of hosting the content.
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