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Summary:

After three years of trying — and failing — to make a business out of running an online video portal, Joost has been acquired by advertising and branded entertainment firm Adconion Media Group. Terms of the deal weren’t disclosed, but the acquisition will come as little […]

After three years of trying — and failing — to make a business out of running an online video portal, Joost has been acquired by advertising and branded entertainment firm Adconion Media Group.

Terms of the deal weren’t disclosed, but the acquisition will come as little surprise  to anyone that’s followed the company’s downward trajectory after launching in 2007 with more than $45 million in funding from heavy hitters such as Sequoia Capital, Index Ventures, Viacom, CBS and Chinese tycoon Li Ka-shing.

The company was rumored to be up for sale back in the spring, with Time Warner Cable topping the list of potential acquirers. From an operational standpoint, Joost has been badly hobbled since June, when it announced that it had laid off most of its staff and was trying to reshape itself as a white-label video management platform.

In its press release, Adconion said that it intends to continue pursuing the video management business, and that the addition of the Joost assets will further “solidify its position in the online video and content syndication market.” Adconion’s business is all about mass distribution of ads and branded entertainment, so having a video management platform like Joost makes sense. The company also said it would continue to operate Joost.com, both as a place to serve its own ads, and as a showcase for branded entertainment content that it produces.

  1. Can I be the last one to say that, at last Joost is toast. That’s the way it rhymes in Dutch. Not surprisingly, it didn’t rhyme with Juiced in English. What a FUBAR. Remind me again about how smart the VCs at Index and Sequoia are? Pity their LPs.

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  2. [...] with the once-promising web video provider. Now that Joost has sold off its assets for a pittance in a deal that came to light this morning, the comparison is no longer flattering –- but there are still plenty of parallels between the [...]

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  3. [...] of an iPhone app for online video start-up Joost did little to save it from collapsing and being sold off to ad firm Adconion earlier this [...]

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  4. [...] dominance. After three years of failing to make a business out of running an online video portal, Joost was acquired by advertising and branded entertainment firm Adconion Media Group late last year. And Babelgum [...]

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  5. [...] Resurrected As a Video Ad Network Joost, just a few months after having its assets purchased by Adconion Media Group, has found new life as a video ad network. With the just-launched Joost [...]

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  6. [...] just a few months after having its assets purchased by Adconion Media Group, has found new life as a video ad network. With the just-launched Joost [...]

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  7. [...] — Hulu might have felt the need to distance itself from other online video sites, like Joost and Veoh, that have run asunder over the past 12 months. Maybe it felt the need to prove that [...]

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  8. [...] Knew? Joost Makes a Better Ad Network Than a Video Portal For those that questioned the acquisition of Joost by ad firm Adconion last year, or the subsequent transformation of the online video portal into a [...]

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  9. [...] In Advertising, New media on April 16, 2010 at 1:12 pm For those that questioned the acquisition of Joost by ad firm Adconion last year, or the subsequent transformation of the online video portal into [...]

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  10. [...] their content from partners and distribution channels, and well-funded online video aggregators Joost and Veoh shuttering their businesses, what role will the internet play in the video content [...]

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