US Internet giant AOL is buying Israeli web video start-up 5min Media. AOL confirmed the acquisition, which had been reported in technology blog All Things Digital.
The value of the deal was not reported but sources close to the company told "Globes" that it is around $65 million.
AOL chairman and CEO Tim Armstrong said, “Our acquisition of 5min Media is the latest in a number of steps we have taken this year to better position AOL to capture the growing video opportunity on the Web. AOL is building a video ecosystem for the next decade. 5min Media is the perfect complement to our powerful video capabilities -- it provides a missing piece in the AOL value chain that completes our end-to-end video offering from content creation through syndication and distribution to the consumer experience and monetization.”
5min was founded in 2007 by Ran Harnevo, who serves as chairman; Tal Simantov, chief marketing officer; and Hanan Laschover, chief technology officer. 5min is a platform for instructional videos in all kinds of fields that enables people to share their knowledge by uploading videos lasting up to five minutes.
5min has raised $13 million to date, reportedly from venture capital funds Spark Capital and Globespan Capital, along with private investors. The private investors include Nehama Karpol, Ofer Lazovski, and advertising agency Adler Chomsky's Grey Interactive Israel as well as basketball star Oded Katash.
The deal is AOL's fifth acquisition in Israel, having bought ICQ-developer Mirabilis, Relegence, Yedda, and Quigo.
Published by Globes [online], Israel business news - www.globes-online.com - on September 28, 2010
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