AOL (NYSE: AOL) says it is buying the GoViral video distribution network because it “supports our overall content strategy by creating another immediate delivery path for all of the great content we are generating daily”.
GoViral has a network of 18,000 sites through which to distribute video campaigns for brands. It says these videos generate more than 60 million monthly views.
The sale is $74.1 (£46.53) million, plus a further $22.6 (£14.19) million over the next two years.
AOL says: “As part of AOL Europe, GoViral will help distribute both branded video content and premium digital content from across the entire AOL network of content sites – eventually becoming something that we offer to our advertisers as a strategic and tactical advertising solution – both internationally and in the U.S.”
According to the announcement: “In the second half of 2010 alone, AOL has closed deals with more than 20 premium content partners and digital studios to deliver a mix of high quality programming to AOL’s audiences around the world.” They include with Endemol, Vuguru, Electus, Next New Networks, Channel Flip, Telepictures, Dannii Minogue, Heidi Klum and MarloThomas.com.
The announcement specifically says the acquisition is being done by “AOL Europe” and is bigging-up AOL Europe’s SVP Kate Burns as having driven it. The former Dailymotion exec was absorbed by AOL before it off-loaded Bebo, where she was VP.
Burns: “Video is core to AOL’s consumer programming strategy and GoViral has created an incredibly compelling platform that delivers highly measureable and cost effective solutions to publishers and advertisers.
“We believe that GoViral offers a unique proposition in today’s market, and allows us to match our ambition for premium content creation and engaging advertising, with highly targeted distribution at scale.”
GoViral has offices in the UK, Germany, France, Denmark, Sweden and Spain. It raised €6.5 ($8.91/£5.6) million from Kenneth in 2009.