ONLINE VIDEO DISTRIBUTION NETWORK GOVIRAL ACQUIRED BY AOL EUROPE
ONLINE VIDEO DISTRIBUTION NETWORK GOVIRAL ACQUIRED BY AOL EUROPE
London, UK, January 31, 2011 – AOL Europe, part of AOL Inc. (NYSE: AOL), today announced that it has acquired the video distribution network goviral. goviral distribute branded video content across the Internet for some of the world's largest and most esteemed brands, media agencies, creative agencies, and content producers. The transaction will further strengthen AOL's video offerings in Europe and ultimately North America and will deliver further scale, placing it in pole position to expand its reach internationally, engage new highly targeted consumer audiences and serve its advertising partners. AOL Inc. has completed the purchase of goviral A/S ("goviral") for $74.1 million. In addition, $22.6 million of consideration will be deferred and paid over two years following completion. goviral is set to join other strategic acquisitions made byAOL in 2010 including StudioNow, 5min Media, TechCrunch, Thing Labs, Pictela and most recently, about.me.
"Video is core to AOL's consumer programming strategy and goviral has created an incredibly compelling platform that delivers highly measureable and cost effective solutions to publishers and advertisers," said Kate Burns, SVP, AOL Europe. "We believe that goviral offers a unique proposition in today's market, and allows us to match our ambition for premium content creation and engaging advertising, with highly targeted distribution at scale. We look forward to welcoming this truly talented and innovative team."
goviral will retain its offices in the UK, Germany, France, Denmark, Sweden and Spain - and further global expansion is planned.goviral's current video content distribution network includes more than 18,000 publishers1. across 24 verticals, allowing its clients to reach well over 350 million2. global Internet users and generate more than 60 million video views monthly.3. Specialising in the distribution of viewer-activated videos it has delivered unique campaigns for some of the world's most progressive and well known brands including: Nike, LG, Unilever, Paramount, Nokia, Hyundai/Kia, Audi, Nintendo and Gucci.
"We're excited to be joining AOL, a company with vision, that truly understands the shifting dynamics of the Internet. AOL has made a clear commitment to deliver great original content, and with their strong US position, it is a great accelerator for us to grow internationally and realize the potential of video," said René Rechtman, CEO, goviral. "We simply believe and have experienced that good content is a key driver to reach and engage audiences globally. Working with a strong global brand such as AOL we are able to bridge the best of both worlds; scale and quality content that has relevance and resonance for users, advertisers and publishers."
AOL UK is growing its content using more than 100 journalists and celebrity contributors. It delivers rich editorial, branded experiences and original video content, built around audiences, and has seen its UK UVs rise by more than 6%4. during the final quarter of 2010. As a part of AOL Europe, goviral will help distribute both branded video content and premium digital content from across the entire AOL network of content sites from MyDaily and Eleven to AOL Music and Fanhouse UK.
In the second half of 2010 alone, AOL has closed deals with more than 20 premium content partners and digital studios to deliver a mix of high quality programming to AOL's audiences around the world. Within that mix, AOL has announced several new video franchises not seen anywhere else on the Web, including partnerships with Endemol, Vuguru, Ben Silverman's Electus, Next New Networks, ChannelFlip, Telepictures Productions and the Ellen DeGeneres Show Web site, Dannii Minogue, Heidi Klum and MarloThomas.com.
Finally, "You've Got..." the video series that debuted with the new AOL.com launch, generated nearly 8 million views in its first month, and featured a diverse guest list including Kelly Ripa, Barack Obama, Matt Damon and the Marines in Afghanistan.5. AOL Video is currently ranked #4 in video audience with 48.6M viewers.6. Overall, video views on the new AOL.com rose more than 3X in its first month.7.
To find out more information on goviral, visit: goviral
Twitter pitch: @AOLEurope online video distribution network goviral acquired by AOL Europe
- Ends -
1. Internal goviral network - Nov 2010
2. Internal goviral network - Nov 2010
3. Internal goviral analytics - Nov 2010
4. UK comScore Media Metrix - Oct 2010 - Dec 2010
5. AOL Inc. internal data
6. US comScore Video Metrix, Content Videos only - Dec 2010
7. AOL Inc. internal data
This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding business strategies, market potential, future financial and operational performance and other matters. Such forward-looking statements include, but are not limited to, statements regarding the anticipated benefits of the transaction and other statements identified by words such as "may," "will," "intend," "should," "expect" or similar expressions. These statements are based on management's current expectations and beliefs, and are subject to uncertainty and changes in circumstances, including, but not limited to, changes in our plans, strategies and intentions; the competitiveness and quality of our products and services; our ability to retain, hire and develop key employees; our ability to successfully integrate goviral technology, administrative systems, personnel and operations into our services, systems and operations and unanticipated expenses related to such integration; and the intensity of competition. Any forward-looking information is not a guarantee of future performance and actual results may vary materially from those expressed or implied by the statements herein, due to changes in economic, business, competitive, technological, strategic and/or regulatory factors, as well as factors affecting AOL's operations and businesses. More detailed information about these factors as they relate to AOL may be found in the section entitled "Risk Factors" in AOL's Annual Report on Form 10-K, filed with the Securities and Exchange Commission. AOL is under no obligation to, and expressly disclaims any obligation to, update or alter the forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise.
AOL Inc. (NYSE:AOL) is a leading global Web services company with an extensive suite of brands and offerings and a substantial worldwide audience. AOL's business spans online content, products and services that the company offers to consumers, publishers and advertisers. AOL is focused on attracting and engaging consumers and providing valuable online advertising services on both AOL's owned and operated properties and third-party websites. In addition, AOL operates one of the largest Internet subscription access services in the United States, which serves as a valuable distribution channel for AOL's consumer offerings. AOL Europe Sarl is an indirect wholly-owned subsidiary of AOL Inc.
goviral A/S distributes branded video content for over 500 clients that include some of the world's most famous superbrands such as Nike, Sony, Coke, Nokia, Audi, Mercedes and Proctor & Gamble. goviral's distribution network consists of over 18,000 publishers, leading social networks and mobile applications categorised in 24 vertical that generate up to 60 million video views each month and reach of over 350 million internet users worldwide. goviral's unique value proposition is guaranteeing clients a minimum number of targeted video views, bought on a pay-for-performance basis.
Tel: +44 (0) 20 7492 1203
Tel: +44 (0) 20 7492 1403