] HipMojo.com » Lesson from Sony/Grouper Networks deal: 10th place in video-sharing - $65 million price tag?

Lesson from Sony/Grouper Networks deal: 10th place in video-sharing - $65 million price tag?

GAINING A FOOTHOLD IN THE booming Web video field, Sony Corp.’s Sony Entertainment Pictures is acquiring video-sharing site Grouper Networks for $65 million, the companies announced Wednesday.  

 

For Sony, the deal represents a big bet on the future of viral video, especially as Grouper has little revenue and modest traffic so far. “We see this as a huge growth opportunity for our company,” said Sean Carey, a Sony Pictures executive who is replacing co-founder Josh Felser as Grouper CEO. Felser remains as co-president.

According to Hitwise, Grouper.com was the 10th-ranked online video search site as of last week, receiving less than 1 percent of all traffic for the category. The site had 542,000 visitors last month–compared to 16 million for high profile video-sharing site YouTube and 21 million for Yahoo Videos, according to comScore. Felser said that comScore doesn’t accurately measure Grouper’s audience, and put its traffic at eight million last month.

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Posted By: Ashkan Karbasfrooshan | Aug 25th

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