Feeds

AOL seeds future with video buy

Finds $37m after December layoffs

Boost IT visibility and business value

Still-existing web outfit AOL has spent $36.5 million to acquire StudioNow, a Nashville-based startup that builds online video platforms for other companies.

AOL intends to work StudioNow's mojo into Seed.com, the company's media clearinghouse launched last year shortly after the 26-year-old internet company was spun-off from media giant Time Warner.

Seed.com solicits, buys, and distributes topical online content from freelancers across all of AOL's properties. StudioNow will contribute to AOL's in-house video work as well as advertising and content partners.

"Premium original video creation is a fundamental part of AOL's strategy to offer consumers world-class, stimulating content at scale and the integration of StudioNow into Seed.com will enable us to increase our video content/offerings significantly," Tim Armstrong, AOL chief executive and chairman, said in a statement (that really should have been two separate sentences for clarity's sake).

StudioNow will also continue to develop its existing business of selling online video creation and distribution platforms for commercial companies.

The acquisition of StudioNow closed on January 22 and valued at $36.5m in cash and stock, with a portion of the legal tender paid out over "multiple years."

In December, AOL announced plans to lay off about 1,400 employees after it failed to reach its goal of convincing 2,500 staff to take voluntary redundancy. Only about 1,100 workers took the voluntary redundancy plan, leaving AOL with the task of passing out pink slips to the rest.

No word as to the fate of StudioNow's crew. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.