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So Joost’s been put out of its misery and its assets have been acquired by Santa Monica, CA-based online ad network Adconion Media Group. Terms of the deal were not disclosed, but likely would have been pennies on the dollar, compared to the money that was invested in the once much-hyped online video service. Adconion is also part funded by Joost backed Index Ventures. What’s part of the sale: some tech assets, trademark and Joost.com. Adconion PR told us that it plans to keep operating Joost.com, the consumer video service. About a dozen employees of Joost have joined Adconion, out of about 20, which means rest were probably let go. Also, miraculously, some part of Joost is continuing on as a separate company, though it isn’t yet clear what and who’s left; we’re trying to find out.
This comes after Joost gave up the consumer online video market back in June, and decided to focus on white label services. Adconion says that fits well with its own business, as it recently expanded into video advertising. Rumors to the sale of Joost to Adconion started surfacing earlier this month, along with the news that Joost’s UK branch was bankrupt.
Joost was founded in early 2007 by Janus Friis and Niklas Zennstroem, the founders of Skype and Kazaa who then moved on to start their own venture fund and eventually leave Skype/Ebay, and are now famously back as part owners of Skype. It had raised upwards of $50 million in funding.
RELEASE: Adconion Media Group Acquires Joost Assets
New Capabilities Provide Advertisers, Content Owners and Publishers with an End-to-End Cross-Channel Video Solution
Source: Adconion Media Group
On 8:30 am EST, Tuesday November 24, 2009
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SANTA MONICA, Calif., Nov. 24 /PRNewswire/ — Adconion Media Group (www.adconion.com), the largest independent global audience and content network, announced today that it has acquired certain assets from privately-held Joost, the online video service. Terms of the transaction were not disclosed.
“Video is a top priority for our company, and through the acquisition of the Joost assets we will be able to provide advertisers, content owners and website publishers with an end-to-end global video platform and cross-channel video and display ad-serving solution,” said Tyler Moebius, CEO, Adconion Media Group. “This acquisition immediately brings additional scale and content to the Adconion video pre-roll network for clients who are looking for a safe, cost-effective alternative to achieve the maximum value of online video advertising. We’ll also continue to operate Joost.com, providing clients with a destination site to showcase and distribute their branded entertainment content.”
In June, Joost announced a change in its business strategy to focus on providing white-label video platforms, and Adconion plans to pursue this strategy. On Friday, Adconion announced its first long-term licensing partnership as the exclusive display and video ad-serving solution for the Goldbach Media Group in Europe.
The acquisition of Joost assets adds many dimensions to Adconion’s existing video services and further will solidify its position in the online video and content syndication market. Prior to the acquisition, Adconion offered targeted distribution of content, including video and television commercials, to audiences around the world via Adconion.TV; as well as customized branded entertainment solutions for clients through its exclusive relationship with the digital studio RedLever. Through the Joost acquisition, Adconion.TV will add to its library of professionally-produced video content available for targeted pre-roll advertisements across 2,000 premium publishers.
Janus Friis, co-founder of Joost, said, “Over the past few months we have been actively exploring strategic options for Joost, and have concluded that the sale of certain of its assets to Adconion is in the best interests of Joost. Adconion has a strong technological platform and a compelling business model, and we believe that both businesses will benefit as a result of this acquisition.”
A leader in advertising innovation, targeting and distribution, Adconion reaches nearly 300 million unique users on a monthly basis. Prior to the Joost acquisition, Adconion was serving more than 80 million video streams per day to targeted audiences across 2,000 global websites.
Adconion Media Group (www.adconion.com) is the largest independent global audience and content network, reaching nearly 300 million unique users – or one-third of the total global Internet population – every month. Dedicated to true partnerships with agencies and marketers, Adconion arms agencies with customized technology and products designed in-house while delivering massive global reach across multiple platforms through a single network, and is an international leader in evolving the ad network model to create, distribute and monetize video content. Adconion has 16 offices in 7 countries around the world, sits on the board of the Interactive Advertising Bureau (IAB) and is a founding member of IASH Europe. For more information, visit http://www.adconion.com.