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Rumor: Revision3 Could be Acquired by Discovery ?

  • Posted By Andrew Zarian
  • May 01, 2012

The New York Times has reported that Web TV network Revison3 could be acquired by the Discovery Channel. The total amount for this acquisition could be around 40 million dollars. in the article the New York Times goes on to say that:

The two companies are in talks that could result in a sale as early as this week, a person with knowledge of the negotiations said, confirming a Monday night report on the Web site TechCrunch. Discovery is expected to pay $20 million to $40 million for Revision3, which raised $9 million from venture capital companies when it was formed in 2006 and 2007.

A representative for Discovery, based in Silver Spring, Md., declined to comment, as did a representative for Revision3, based in San Francisco.

The acquisition would not be financially material for Discovery, which has a market cap of $24 billion. But it would represent an investment in an evolving marketplace, Web video. Revision3 produces Web shows about technology, video games, entertainment and other topics. Its top shows include “Epic Meal Time,” “Tekzilla” and “Film Riot.”

The entrepreneurial, scrappy style of Revision3’s shows stands in contrast to the slickly produced programs on cable channels like Discovery. Through the acquisition, Discovery would be picking up both the traffic to Revision3 and the Web video skills of its staff.

Revision3’s revenues are not publicly known, but in January it said that those revenues grew 53 percent in 2011. In the same time frame, its video viewership grew more than 350 percent.

“We had another amazing year in 2011, and are looking forward to a strong 2012 with our content available anywhere and everywhere,” the Revision3 chief executive, Jim Louderback, said at that time. “By working with incredibly talented content creators, we have been building a stable of shows that deliver audience numbers as big, or bigger, than most cable shows.”

Another Web video company, Next New Networks, was acquired by YouTube last year. The purchase price was not disclosed, but YouTube was believed to have paid less than $50 million.

About Revison3

Revision3 has emerged as the leading special interest video network, and has attracted top Internet video talent, advertisers and distribution partners. Based in San Francisco, the company has 35 employees, led by a strong core team out of Ziff Davis, C/net, Pandora, Yahoo and Digg.

Over 23 million viewers watch Revision3's existing programming each month, and the company is now ramping distribution through a network of partners spanning web, mobile and over the top platforms. Our hyper-connected audience gets the vast majority of its entertainment, information and social connections through the Internet.

Source: New York Times

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