Digitalsmiths is buying Gotuit in the latest sign of consolidation in the online video space. Both companies let video content owners manage the metadata associated with their clips, allowing them to organize their content in various ways. PGA.com, for instance, used Gotuit’s technology in August so that viewers of the live feed of the 2010 PGA Championship could jump to key moments in the tournament or to specific shots by favorite players. Digitalsmiths’ customers include Paramount Pictures, which has used the company’s platform so that customers can easily search through an online archive of its clips.
Gotuit was founded in 2000; it had reportedly raised more than $20 million from backers including Highland Capital Partners and Atlas Venture. Digitalsmiths, meanwhile, has raised more than $18 million from investors including Cisco (NSDQ: CSCO), 406 Ventures, Aurora Funds, and Chrysalis Ventures. As part of the deal, Gotuit’s shareholders will now own a stake in the combined company.
Digitalmsiths most recently raised a $12 million second round two years ago. Cisco took a stake in the firm a year-and-a-half ago. Some more details about the deal in this release.

Comments have been disabled for this post