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Web TV Startup Revision3 May Sell To Discovery Channel For $40M, Sources Say

Discussion in 'Off-Topic Discussion' started by CatfishRivers, May 1, 2012.

  1. CatfishRivers

    CatfishRivers Well-Known Member

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    Web TV startup Revision3 may sell to Discovery Channel for $40M, sources say | VentureBeat (click for article)

    "After paving the way for Internet-based TV networks, Revision3 might finally be catching some attention from well-established cable television companies.


    The startup is rumored to be in discussions with The Discovery Channel about a possible acquisition, reports TechCrunch. Revision3 has spent the past few weeks working on the deal, which values the startup between $30 million to $40 million. The report also indicates that a sale could be finalized by the end of the week.


    Revision3 declined comment to VentureBeat regarding the sale.


    The Internet TV network produces a variety of original web video shows about technology, comedy, pop culture, video games, music, and more. Some of its most popular shows include EpicMealTime, Diggnation, Tekzilla, Destructoid, and Totally Rad Show. The network is available across a plethora of digital platforms (e.g. Roku, Boxee, Zune, Tivo, Yahoo's Connected TV Platform, Google TV, iOS, Android, and an HTML5-optimized video player). Those shows are mainly produced in Revision3's studio, with videos get distributed to several of different platforms (YouTube, Facebook, AOL, Yahoo, iTunes, etc.) that generate revenue from a mix of advertising and in-show sponsorships.


    It's programming brings in about 100 million monthly video views - with yearly audience numbers comparable to traditional cable TV networks, as VentureBeat reported back in January. And while Revision3 didn't reveal its financial records for 2011, it did state that ad revenue was up by 53 percent compared to the previous year.


    If an acquisition does happen, Revision3 would become the first Internet-based network for The Discovery Channel, which also owns TLC, Animal Planet, Oprah Winfrey Network (OWN), The Military Channel and Science Channel. "
     
    Last edited: May 1, 2012
  2. jralabate

    jralabate New Member

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    Nooooooooo!

    Sent from my NS4G powered by AOKP ICS
     
  3. CatfishRivers

    CatfishRivers Well-Known Member

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    Discovery Buys Revision3 for $30 Million - Peter Kafka - Media - AllThingsD (click for full article)

    "Web video is supposed to disrupt cable TV. And maybe it will, one day. In the meantime, the cable guys are doing just fine.

    Here's a proof point: Discovery Communications, parent of the Discovery Channel, has purchased Revision3, a Web video start-up that makes and distributes its own shows, like "Tekzilla" and "Epic Meal Time."

    Discovery isn't disclosing a purchase price, but multiple sources familiar with the transaction tell me the cable guys will pay around $30 million for the start-up. The company ended up raising about $10 million during its six-year lifespan, with the last chunk coming from a group of investors that included Mark Cuban.

    All of Revision3's 50 employees are supposed to stay on, and there's a chance that they could end up pulling down sizeable earnouts. But they probably won't, because that's the nature of earnouts. "
     
    Last edited: May 3, 2012

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