Rightster has bought rival operator Base79 for £50m, as the online video network expands- with YouTube founder Chad Hurley joining the company as an investor on its advisory committee.
The multichannel network operator, which runs various video channels on YouTube has also acquired video management and licensing firm Viral Spiral for up to $7 million (£4.1 million).
It said the deals would make it the fourth largest multichannel network operators in North America and the largest outside the U.S.
“The acquisitions will support Rightster’s ability to achieve market leadership in online video – combining Rightster’s tech-supported 360 distribution and monetization 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,” the firm said.
Following the agreement Rightster will add 2,000 YouTube channels to its portfolio, doubling its existing client base, and catapulting its traffic from 371m monthly video views to 1.1billion.
Base79’s clients include SBTV, Reuters and Ministry of Sound.
Under the terms of the deal, Rightster will pay £25m in cash and a further £25m in 12 months depending on the achievement of earn out targets.
Base79’s Patrick Walker, a former YouTube exec, will join Rightster’s executive team, which is led by chief executive Charlie Muirhead as chief commercial officer.YouTube founder Chad Hurley will join Righter’s advisory board.
Muirhead said it was a “transformational” deal.
“This greater scale and expertise improves the service we will be able to offer creators and publishers, improving our ability to both grow audiences and increase monetisation and positions us as a global leader in the exploding online video market for brands and media agencies,” he said.
MacKenzie, who established Base79 as Myvideorights, in 2008, added: “By joining forces with Rightster, we will be able to bring the expertise and industry relationships of the combined group across the world.”
In November Rightster raised £20m after floating on Aim and announced its intentions to expand aggressively.