US Report: RealNetworks soars on Lotus distribution pact

RealNetworks rose 32 percent, up 8 3/8 to 35 3/4 today after the company said that IBM/Lotus unit will distribute RealNetworks' G2 streaming technology with its Domino and Notes products.

The company makes the G2 technology that allows Internet users to listen and watch audio and video through the Internet in real-time without downloading information. RealNetworks player will be used by Lotus' 25 million users.

"This distribution agreement along with the AOL deal are important for RealNetworks," said Daniel King, an analyst at LaSalle St. Securities. "The more players RealNetworks is aligned with, the more they will be able to keep their marketshare."

Last Week, America Online penned a deal with RealNetworks to distribute AOL's Instant Message system on its Web site and RealNetworks will contribute content to AOL My News. The deal with Lotus will allow RealNetworks broader access to the corporate Intranet market, to companies such as 3Com, that use Lotus Notes for e-mail and other communications.

RealNetworks also recently inked a technology pact with Intel.