Online advertising company Adconion Media Group has acquired some of the remaining assets of the online video service Joost. Adconion will continue to operate the Joost.com service, while expanding its existing video and advertising platform. Terms of the deal were not disclosed.
Joost was first announced in Januray 2007 by Janus Friis and Niklas Zennström, the founders of Kazaa and Skype, who promised to revolutionise online video distribution but failed to attract premium programming or a significant audience. The company announced in June 2009 that it was concentrating on providing white-label video platforms. In October the business in the UK was declared insolvent.
“Over the past few months we have been actively exploring strategic options for Joost, and have concluded that the sale of certain of its assets to Adconion is in the best interests of Joost,” said Janus Friis. “Adconion has a strong technological platform and a compelling business model, and we believe that both businesses will benefit as a result of this acquisition.”
Prior to the acquisition, Adconion offered targeted online distribution of content, including video and television commercials. Through the acquisition it will add to its library of professionally-produced video content available for targeted pre-roll advertisements across 2,000 premium publishers.
“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,” said Tyler Moebius, the chief executive of the Adconion Media Group.
“This acquisition immediately brings additional scale and content to the Adconion video pre-roll network for clients who are looking for a safe, cost-effective alternative to achieve the maximum value of online video advertising. We’ll also continue to operate Joost.com, providing clients with a destination site to showcase and distribute their branded entertainment content.”
Adconion reaches nearly 300 million unique users a month, serving more than 80 million video streams a day across 2,000 web sites.