Big news Tuesday morning from Rightster, a cloud-based global video distribution and monetisation network: It has bought Viral Spiral for up to £4.1 million (approx. $7 million) and wants to acquire another London-based MCN, Base79, for up to £50 million (approx. $85.6 million).
The deals would catapult Rightster to a spot among major players in the web video space – it would become the fourth biggest YouTube MCN by audience in North America and the largest MCN outside of North America. Rightster also announced Tuesday that Chad Hurley, former CEO and co-founder of YouTube, is buying into the company and will join the Rightster advisory committee.
According to a statement, 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.”
Patrick Walker, chief content officer at Base79, would join Rightster executive team.
To help fund the deals, the company is looking to raise £42 million (approx 72 million) and has placed 75 million shares for sale at a price of 56 pence per share — a discount of .9%.
More about the Viral Spiral deal: The up to £4.1 million price tag is a combination of cash and stock, with about £1.75 million being paid in cash on closing, plus a maximum of £0.85 million in cash approximately one year after closing, based on financial and commercial targets.
“In essence, it will be “business as usual” for Viral Spiral, but significantly enhanced by the Base79 content partners and Rightster’s technology platform, which are the exact synergies that attracted us this deal,” Damian Collier, CEO and founder of Viral Spiral, tells StreamDaily.
Base79 is being offered up to £25 million plus net cash and working capital adjustment in cash on closing, plus £25 million in Rightster shares if it meets financial and commercial targets by April 30.