France Telecom Backs Lookout with $20M Investment, Preloads Security on Android
Strategic Partnership Expands Mobile Security Reach
Lookout, a leading mobile security firm aiming to dominate wireless protection, has secured a major strategic investor and distribution partner. France Telecom, parent company of mobile carrier Orange, is investing up to $20 million (€15 million) in Lookout while also preloading its security solutions on Android devices across Orange’s network.
Key Highlights of the Deal
- Preloaded Security: Lookout’s antivirus and device-tracking solutions will come preinstalled on Android devices sold by Orange.
- Initial Markets: France, Slovakia, Spain, and the UK (via EE, Orange’s joint venture with T-Mobile).
- Launch Timeline: Early 2013.
- Subscriber Base: Orange’s 169 million customers gain access to enhanced mobile security.
Why Lookout? A Growing Need for Mobile Protection
With 30 million active installs and \(76 million in prior funding from top-tier investors like Khosla Ventures and Andreessen Horowitz, Lookout is positioned as a leader in mobile security. France Telecom's investment comes from its **OP Ventures Growth fund**, a \)400 million initiative backed by Orange, Publicis, and Iris Capital Management.
Addressing Android’s Security Challenges
- Rising Threats: Kaspersky Lab reported 14,900 malicious Android programs in Q2 2012—a threefold increase from Q1.
- Consumer Risk: Lookout estimates 40% of Android users will click on a malicious link this year.
- Open-Source Vulnerabilities: Android’s popularity makes it a prime target for hackers.
A Consumer-Centric Approach
Xavier Perret, VP of Partnerships at Orange, emphasized that Lookout is a “consumer play.” As smartphone adoption grows, later adopters—often less proactive about security—benefit from preloaded protection.
“Orange has the opportunity to be the digital coach for those consumers, explaining the services and offering support,” Perret noted.
Beyond Android: Future Expansion Plans
While the initial focus is Android, Lookout’s software already supports iOS, with plans to expand to Windows Phone and other platforms as market demand grows.
A Non-Exclusive but Strategic Partnership
France Telecom’s investment doesn’t restrict Lookout’s existing partnerships. The company already collaborates with carriers like Deutsche Telekom (T-Mobile), Verizon, and Sprint.
Alex Abey, Lookout’s VP of Business Development, highlighted the importance of carrier involvement:
“It’s about OEMs, carriers, and security companies working together to make mobile computing safer for consumers.”
The Bigger Picture: Building a Security Ecosystem
France Telecom is Lookout’s first carrier investor, signaling a deeper collaboration in mobile security innovation. With 40% of Lookout’s users outside the U.S., international growth remains a priority.
This partnership underscores the increasing importance of proactive mobile security solutions in an era of rising cyber threats—and positions Lookout as a key player in the industry.
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