Rightster has acquired rival Base79 in a deal that could be worth as much as £50 million (€63m).
The business, which manages and monetises video channels on YouTube, said the deal will make it the fourth biggest channel provider in North America and the largest outside the US.
Rightster is paying around £25 million cash for Base79 – which is run by Ashley MacKenzie and made £3.27 million in net revenue and a loss of £3.74 million last year, plus £25 million in shares a year after the deal closes if management can hit certain performance targets.
Rightster has also revealed that Chad Hurley, the co-founder and former chief executive of YouTube, is to become a shareholder and join the company’s advisory committee.
Rightster has also acquired Viral Spiral, the video management and licensing firm, in a cash and shares deal worth £4.1 million.