It’s kind of anti-climactic with rumors about AOL (NYSE: AOL) buying TechCrunch swirling around, but word that CEO Tim Armstrong and company are acquiring how-to video syndicator 5min has the virtue of not only being more readily believable, but it’s also more in line with AOL’s recent activity. No response yet from 5min or AOL reps, but MediaMemo’s Peter Kafka, who broke the news, said an announcement is expected in the morning.
Updated: The deal is estimated to be between $50 million to $65 million, though closer to the higher end of that range, Kafka wrote.
5min is not only a natural fit as AOL looks to expand its content offerings as widely as possible, but it follows the recent attention being given to video. Last week, Armstrong told an investors conference that it was looking for new approaches to video. Over the summer, AOL introduced Cambio, a JV with the tween sensation The Jonas Brothers, as a new entertainment channel with ready appeal to advertisers and a devoted younger audience.
Even more important than that, however, the new Google (NSDQ: GOOG) search deal that was signed earlier this month included more collaboration in the video area, where Google is also dominant because of YouTube.
Last year, New York-based 5min raised $7.5 million in a second round of funding from Globespan Capital Partners, Spark Capital and others. Since opening its doors three years ago, the company has raised about $13 million in total.