AOL Inc. announced Monday that it bought Nashville's StudioNow Inc., an online platform for video creation and distribution.
The purchase will allow AOL to integrate a video creation platform into its newly-launched content management system, Seed.com. StudioNow will also continue to develop its existing business as a provider of online video creation, management, storage and syndication services to commercial companies.
The acquisition of StudioNow closed on January 22 and was valued at $36.5 million in cash and stock with a portion of the cash paid out over multiple years.
“Premium original video creation is a fundamental part of AOL's strategy to offer consumers world-class, stimulating content at scale and the integration of StudioNow into Seed.com will enable us to increase our video content/offerings significantly,” said Tim Armstrong, AOL CEO and Chairman.
StudioNow was founded in 2007 and partners with mid-sized and local companies to create, store, and manage content and syndicate it to online video channels and portals. Since it was started, the company had attracted venture capital investments topping $4 million.
“This new chapter for StudioNow presents a tremendous opportunity for our growing professional creative network to reach new audiences, diversify their assignments and increase their income as the number of projects coming from the numerous AOL properties will create a surge in video assignments,” said StudioNow's co-founder and CEO David Mason.