AOL Europe, part of web services giant AOL, has acquired the video distribution network goviral in a $74.1 million deal. In addition, $22.6 million of consideration will be deferred and paid over two years following completion.
goviral distributes branded video content across the Internet for brands, media agencies, creative agencies, and content producers. goviral is set to join other strategic acquisitions made by AOL in 2010 including StudioNow, 5min Media, TechCrunch, Thing Labs, Pictela and most recently, about.me.
AOL says the transaction will further strengthen its video offerings in Europe and ultimately North America and will deliver further scale, placing it in pole position to expand its reach internationally, engage new highly targeted consumer audiences and serve its advertising partners.
“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,” said Kate Burns, SVP, AOL Europe. “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 will retain its offices in the UK, Germany, France, Denmark, Sweden and Spain, with further global expansion planned. René Rechtman, CEO, goviral, said the company believed and had experienced that good content was a key driver to reach and engage audiences globally. “Working with a strong global brand such as AOL we are able to bridge the best of both worlds; scale and quality content that has relevance and resonance for users, advertisers and publishers,” he added.