LiveUniverse Buys Revver for More than a Song (about $5M)

Troubled video site Revver was bought by Brad Greenspan’s LiveUniverse last night for a price “many multiples more” than the $500,000 to $1.5 million reported recently, according to a source close to the deal. Update: We now know that the price was *just* under $5 million, so it seems our source’s math was a little optimistic. We’ll add more if we can get more specific.

Our source would not disclose the selling price, but said “I wouldn’t say anyone got rich, but everybody was happy.” Revver had raised $12.7 million from Comcast, Turner, Draper Fisher Jurvetson, Bessemer Venture Partners, Draper Richards and William Randolph Hearst III. The Revver team will continue working under the new ownership.

Revver gained goodwill early on for being the first video-sharing site to split revenue with creators. Many independent creators still prefer the service, though web video stars Ze Frank, Ask a Ninja, Lonelygirl15, and Invisible Engine have discontinued using it as their main platform. The company, growing up alongside YouTube, was brought down from the limelight with a combination of bad luck, management problems, and product weaknesses. And oh yeah, the fact that it’s hard to make money on web video. But nowadays if you’re a popular web video creator, people will fight to make revenue on your clips and share it with you.

Purchaser LiveUniverse operates multiple sites, including video-sharing service LiveVideo, which about a year ago instigated a scandal on YouTube when it reportedly paid top YouTube users to come to its platform. LiveUniverse founder Brad Greenspan, who was involved with MySpace early on, is perhaps best known for his lawsuits protesting the company’s sale to News Corp.

To its credit, Contentinople was first to report that LiveUniverse was taking a hard look at Revver. CNET brought the story to the forefront last week when it reported that the LiveUniverse deal had fallen through stalled and Revver was shopping itself for $1.5 million or less in cash and debt assumption.