Adconion Media Group has proclaimed that it has snapped up certain significant assets of Joost, an online video service launched by Skype founders Janus Friis and Niklas Zennström that had apparently failed to carve its niche in the online video sharing space.
The financial terms of the acquisition were not disclosed, but it’s reportedly more of a firesale that isn’t fetching any profits for Joost’s investors.
Joost was unleashed with extensive hype in January 2007, but it has over time perceptibly failed to live up to the expectations of its founders, and has been lagging behind other online video portals, including YouTube, Hulu, and Daily Motion.
Of its key assets, Adconion gets hold over the technology that run the Joost’s video streaming service, along with its content catalogue and trademark to the brand name.
In addition, it will also be retaining around a dozen of Joost’s existing employees, according to paidContent.org.
Discussing on how this acquisition could benefit Adconion, the chief executive of the Group, Tyler Moebius, said in a statement: “Through the acquisition of the Joost assets we will be able to provide advertisers, content owners and website publishers with an end-to-end global video platform and cross-channel video and display ad-serving solution”.
The acquisition has further been necessary to reinvigorate the cash-strapped video platform, which despite having millions of users and business model was not able to generate enough revenues to survive.
Joost has failed to rival even smaller rivals like Hulu or Dailymotion. It tried to be so many things at the same time but ultimately, even with the success of Skype and Kazaa, Joost's founders could not guarantee its success.
(Top Tech News)