Deal comes amid rumors that AOL may also acquire TechCrunch.
It wasn't the acquisition news that many expected from AOL today, but the increasingly content-focused company has acquired 5min Media, a video distribution firm in New York.
5min Media takes video created by others and distributes it among its large network of publishers. The company claims a library of more than 200,000 videos from both well-known professional producers (CBS, Scripps) and smaller, independent studios, and a network of 800 partner sites. According to ComScore, its videos reached an audience of more than 20 million unique viewers and more than 130 million video streams in the U.S. last month.
The acquisition provides a logical compliment to AOL's $36.5 million January purchase of StudioNow, a video–production house. AOL now has the infrastructure to create and distribute video on a mass scale.
"What we're trying to build here is end-to-end capability for video," said David Eun, president of AOL media and studios. "What 5min Media allows us to do is take out ability to create and distribute our content and extend it, so we’re able to syndicate our content to a wider array of sites. It also allows us to bring in third-party content to our sites."
Terms of the deal were not disclosed.
Just last week, Tim Armstrong, chairman and CEO of AOL, said at a Goldman Sachs media conference that his company was placing a high priority on video. Eun mentioned that speech in explaining the 5min acquisition, and wouldn't rule out the possibility of more acquisitions to come in the video space.
"This is a big priority for us, and we are going to be looking to make smart deals," he said.
One deal that has been much speculated about this week is AOL's possible acquisition of influential Silicon Valley technology blog TechCunch. Eun declined to comment on the speculation.
Revolutionize your digital marketing campaigns at ClickZ Live San Francisco (August 10-12)!
Educating marketers for over 15 years, our action-packed, educationally-focused agenda offers 9 tracks to cover every aspect of digital marketing. Join over 500 digital marketers and expert speakers from leading brands. Register today!
Douglas Quenqua is a journalist based in Brooklyn, NY who writes about culture and technology. His work has appeared in The New York Times, Wired, The New York Observer, and Fortune.
US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.
E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.