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  • FORM SC TO-C

    WIDERTHAN CO., LTD.

    (Written communication relating to an issuer or third party)

    Filed 9/13/2006

    Address 17F, K1 REIT BUILDING, 463, CHUNGJEONG-RO 3-GA, SEODAEMUN-GU

    SEOUL, 120-709

    Telephone 82-2-2014-5114

    CIK 0001342167

    Industry Software & Programming

    Sector Technology

    Fiscal Year 12/31

  • UNITES STATES SECURITIES AND EXCHANGE COMMISSION

    Washington, D.C. 20549

    SCHEDULE TO Tender Offer Statement under Section 14(d)(1) or 13(e)(1)

    of the Securities Exchange Act of 1934

    WIDERTHAN CO., LTD. (Name of Subject Company (issuer))

    REALNETWORKS, INC. RN INTERNATIONAL HOLDINGS B.V.

    (Names of Filing Persons (identifying status as offeror, or other person))

    (Title of Class of Securities)

    The Common Stock, which is not traded on U.S. markets, has not been assigned a CUSIP number. The CUSIP number for the related American Depositary Shares is 967593104.

    (CUSIP Number of Class of Securities)

    Robert Kimball, Senior Vice President, Legal and Business Affairs, General Counsel and Corporate Secretary RealNetworks, Inc.

    2601 Elliott Avenue, #1000 Seattle, Washington 98121

    (206) 674-2700

    (Name, address, and telephone numbers of person authorized to receive notices and communications on behalf of filing persons)

    Copies of all Communications should be sent to: Patrick J. Schultheis, Esq.

    Wilson Sonsini Goodrich & Rosati Professional Corporation 701 Fifth Avenue, Suite 5100

    Seattle, WA 98104-7036 (206) 883-2500

    Calculation of Filing Fee

    * A filing fee is not required in connection with this filing as it relates solely to preliminary communications made before the commencement of a tender offer.

    Check the appropriate boxes below to designate any transactions to which the statement relates:

    (1) Common Stock, par value KRW 500 per share (2) American Depositary shares, as evidenced by American depositary receipts, each representing one common share

    Transaction valuation* Amount of filing fee

    Not applicable* Not applicable*

    Check the box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was previously paid. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.

    Amount Previously Paid: N/A Form or Registration No.:

    N/A

    Filing Party: N/A Date Filed: N/A

    Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer.

    third-party tender offer subject to Rule 14d-1. issuer tender offer subject to Rule 13e-4. going-private transaction subject to Rule 13e-3.

  • amendment to Schedule 13D under Rule 13d-2. SEC2559(6-05)

    Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.

  • Real Acquires WiderThan

  • Notice to Inv estors These sl ides are for information al purposes o nly and are not an o ffer to b uy or th e solicitat ion o f an o ffer to sel l any securities . The sol icitatio n and th e offer to bu y WiderThan Co ., Ltd. co mmon shares an d American Dep ositary Shares will only be made pursuant to an offer to purchase and related materials that RealNetworks , Inc. intends to file with the Securities an d Exchange Co mmissio n. WiderThan stockhold ers and o ther investors sho uld read the tender offer s tatement, the offer to p urchase and related materials careful ly b ecause th ey con tain important information, in cluding the terms and con ditions o f the tender offer. Once filed, Wid erThan s tockholders and other inv es tors will be able to obtain co pies of th e ten der offer statement on schedule 'TO', the offer to purch ase and related do cuments withou t charg e from the Securities an d Exchange Co mmission th rou gh th e Commiss ion's web si te at www.sec.gov. WiderT han stockho lders and other investors are urged to read carefully those materials prior to makin g any decisio ns with respect to the offer.

  • Forward-Lookin g Statements T his p resentation contains forward -looking statemen ts that inv olve risks , uncertainties and assumption s. If such risks or uncertainties materialize or such assu mptions p ro ve incorrect, the resu lts of RealNetworks, Inc., WiderTh an Co., L td. and their resp ective con solidated subs idiaries could differ material ly from those expressed or implied by such fo rward-looking statemen ts and assumptions . All statements other than s tatements of historical fact are statements that could be deemed forward - looking statements, including th e expected benefits and co sts o f the transact ion; management plan s relat ing to th e t ransaction; the exp ected t iming of th e completio n of the t ransactio n; th e abi lity to complete the t ransactio n consid erin g the various closing condition s; any projections o f earning s, rev enu es , synergies, accretion, margins or other fin ancial items relating to RealNetworks and WiderThan; th e expected global market of Ringb ack To nes an d Mu sic on Demand ; any statemen ts of the plans, s trateg ies and objectives of management for future o perations, includin g the execu tion of integratio n plans ; any statemen ts of expectatio n or belief; and any s tatements of assumption s und erlying any o f the fo regoing. Risk s, uncertainties an d assumptio ns include th e p ossibili ty that expected ben efits may n ot materialize as expected; risks related to the timing o r u ltimate co mplet ion of the tran sact ion; that, prior to th e completio n of the t ransactio n, RealNetwo rks ' bu siness or WiderThan's busin ess may no t perfo rm as expected due to u ncertainty; that the parties are unable to success fu lly implemen t in tegration strategies ; and other risks that are described from t ime to time in RealNetworks' and WiderThan 's Securi ties and Exchan ge Commission repo rts and other fil ings , includ ing b ut not limited to th e risks described in RealNetworks ' Quarterly Rep ort on Form 10-Q fo r the fiscal quarter end ed June 30, 2006 and o ther reports filed after RealNetworks' Annu al Report o n Fo rm 10 -K fo r the fiscal year ended December 31, 200 5 and WiderThan's Annual Report on Fo rm 20 -F for th e fiscal y ear ended Decemb er 31 , 2005. RealNetworks assumes no obligation an d does no t inten d to u pdate these forward -looking statemen ts.

  • Real is Acqu iring WiderTh an for Ap proximately $350 M Approx imately $260M net cash purchase price Cash Tender Offer Deal Structure Finan cial Impact Accretiv e to earnings, exclud ing acquis ition related charges T imeline E xpected to close d uring Q1 2007

  • Agen da In troductory Comments Who is WiderTh an Compan y His tory Core Businesses & Bus iness Model Key Financial Metrics Why Real & Wid erThan Are Joining Forces Q&A

  • Mobile Entertainmen t Lead er Ringb ack Ton e innovato r & market leader Provides inn ovative wireless ap plicatio ns & serv ices Proven leader in Ko rea, world's most adv anced telecom market Provides services to o ver 5 0 carriers in 2 5 countries Tru sted partner to t ier 1 carriers Solid Finan cial Po sition Recurring revenues with h igh scaleable margins Profitab le since 2001 an d stron g cash generation WiderThan Summary WiderTh an Revenues ($mm) *Based solely o n WiderThan Augus t 200 6 forward g uidance 2002 2 003 20 04 200 5 2006 EST Revenue 43.4 5 9 71.6 24 101. 417 12 7.7 4.5 $127.7 - $132.2 *

  • WiderTh an's History Stron g Ro ots in South K orea Emerged from SK Telecom (SKT) & spun out in June 2000 Stro ng Long Term Relationship with SK Telecom Innovated Ring back To ne Category in 2002 & Launched with SKT Entered the U.S. Market Via Purchase of Ztango in October 200 4 Introduced Mu sic On Demand Service with SKT in 200 5 IPO o n NASDAQ in December 2005 T oday ~4 70 people - 290 in Korea, 1 50 in US, 3 0 ROW

  • WiderTh an's Key Products Carrier Ap plicatio n Services (CA S)- 69% of Total Revenues Wid erMu sic(tm) RBT - Rin gback Tone 16.9mm subscribers globally at end Q2'0 6 WiderMusic(tm) Service Platform- Music On Demand (Mo D) Powers SK Teleco m's & Verizon's MoD Metcalf Inter-Carrier(tm) Messaging (ICM) 2 -way messaging across SMS systems of mo bile netwo rk operato rs 9.2Bn messag es in Q2'06 up dated

  • WiderTh an Rin gback Tones (RBT) 1Q04 2Q04 3Q 04 4Q04 1Q05 2Q0 5 3Q05 4Q05 1Q0 6 2Q06 RBT Active Users 7. 1 8.2 8 .8 9.6 1 0.47 11 .9 13.7 14.3 1 5.4 16.9 WIDE RTHAN RBT SUBS RBT ACTIVE USE RS Network based service, works on any handset (mobile or fixed) WiderThan has over 16 Mill ion p aying su bscribers worldwide RBT GLOBAL MARKET $0 $1,00 0 $2,00 0 $3,00 0 $4,00 0 $5,0 00 $6,0 00 200 5 2006 2007 2 008 20 09 2010 2011 Revenue (000's) So urce: ABI Research 2 Q 2006 SK Telecom RBT penetrat ion is ~43% ~6 % av erage penetrat ion in all other mark ets US RBT penetrat ion predicted by Lehman to grow from 5 % in 20 05 to 20% in 2009

  • WiderTh an Music on Demand (Mo D) Key Tier 1 Carriers Usin g WiderThan MoD Platfo rm SK Telecom - Melon V erizon Wireless - VCast Music Global MoD Market 0 1 ,000 2 ,000 3,0 00 4,0 00 5,00 0 6,000 7,000 8,000 9 ,000 1 0,000 2 004 20 05 200 6 2007 2008 2 009 201 0 2011 Revenues $mm Source: ABI Research 2Q 2 006

  • Selected WiderThan Cu stomers Americas EMEA Asia REVE NUE MIX 31% 1% 68% Hutch inson 3G

  • WiderTh an's Business Model Recurring Revenue Model Revenue share with carriers based on consu mer purch ases Revenue grows as more subscribers pu rchase the service & subscribers refresh & down load content Long-term co ntracts with carriers; deeply embedded solutio ns Strong Marg ins Attract ive margins fo r carrier appl icat ions & conten t services Limited sales & marketing costs Everybody makes mon ey

  • WiderTh an Finan cial Summary 1 Ad justed EBITDA adds non-cash s tock comp ensat ion b ack to EBITDA. 2 Adju sted net income adds b ack no n-cash s tock comp ensat ion. ADJUSTED EBITDA & NET INCOME ($mm) (1),(2) REV ENUES ($mm) (1),(2) 2004 financials pro forma for acquisi tio n of Ztango as if it o ccurred on January 1, 2004. E stimate: Based solely o n WiderThan Augus t 200 6 forward g uidance 2002 2 003 20 04 200 5 2006 EST Revenue 43.4 5 9 71.6 24 101. 417 12 7.7 4.5 2002 - 2006E CAGR: 31% $ 127 - $132

  • Wh y Real & WiderThan Are Joining Forces Product Synergy with Mobile Carriers Wo rldwide; On e-Sto p Shop for Mu sic Applicat ions - RBT & MoD Video Applications - VoD Media Delivery Techno logy - Helix(tm) G ames Music Con vergence Between PC, Mobile Pho ne, & Portable MP3 Players Common Cultu res o f Techno logy -Based Innovation

  • Common H eritag e of Inno vation 1995 1 999 199 8 2000 1997 1997 20 01 200 2 2003 2004 2 005 20 06 199 6 Establ ished compan y Ringto ne con tent for SK Telecom Began p ublishing games RBT Serv ice for SK Telecom RBT for: Acq uired Ztango Globe Bhart i Verizo n RBT for T-Mobile MOD service for SK Telecom RBT for: Excelcom TMN MOD service for Verizon Launched RealAudio(r) 1.0 1 st l ive internet b roadcast o f a baseball game RealAudio(r) 3. 0 launches RealJukebox(r) 1.0 laun ched RealPlayer(r) 7 launched RealOne(r) Platform launched RealVid eo (r) 9 released Helix DNA Client released Vo dafon e deploys Real serv ers A cqu ired Listen. com(r) Acquired Gameho use(r) Comcast o nline music service Mo bile Vid eo Service fo r Cin gular RealVid eo(r)

  • Real & WiderTh an Complementary Strengths GEOGRAPHY L INES OF BUSINESS North America Carrier Services Co nsumer Serv ices EMEA Asia

  • Summary Real Acquiring Wid erThan for Approx imately $350M WiderThan is a Great Fit with Real Leader in Mobile Music & Entertain ment Great Relationsh ips with Tier 1 Mobile Carriers Stro ng, Scalable Business Model Excellent Produ ct ,Techn ology , & Marketing Synergy

  • Q&A