Rightster Group hopes to knock out some of their competition in digital video distribution by purchasing Base79, a YouTube multi-channel network (MCN), for $85 million.
According to the company’s press release, the deal would make Rightster the fourth biggest MCN in North America and the largest MCN outside the USA.
“The acquisitions will support Rightster’s ability to achieve market leadership in online video — combining Rightster’s tech-supported 360 distribution and monetisation expertise with Base79’s leading position as the largest YouTube partner outside North America and Viral Spiral’s expertise in social video management, licensing and brand engagement,” said the U.K.-based distributor and ad network in a release.
Also read: Matt Brodlie Joins Relativity as Executive VP of Acquisitions
Rightster also announced the acquisition of Viral Management Limited and plans to bring aboard Chad Hurley, a co-founder of YouTube, who is set to become a shareholder and join the company’s advisory committee.
“The Directors believe that the Base79 acquisition, together with the VML acquisition, will create a scalable digital distribution solution for content creators and brand owners globally and support the Company’s path to profitability,” the statement continued.
Ashley MacKenzie, the founder and CEO of Base79, is pleased with the impending acquisition.
Also read: Congress Warned About DirecTV-AT&T Merger by Writers Guild of America West President
“I am delighted that Base79 will now be able to offer an expanded range of services and support to both current and future customers,” he said a in the statement.
“By joining forces with Rightster, we will be able to bring the expertise and industry relationships of the combined group across the world.”