Online video distribution and marketing company Rightster is set to acquire Base79, the largest YouTube multi-channel network outside North America, while it has concluded the acquisition of outstanding shares in social video firm Viral Spiral.
The proposed acquisition of Base79 is for a total consideration of up to £50m (€62.4m/$85.5m), plus an adjustment for net cash and working capital. The acquisition of outstanding shares in Viral Spiral is for a total consideration of up to £4.1m.
In addition, Rightster will launch 75 million placing shares to raise £42m to part fund cash consideration.
As part of today’s announcements, Patrick Walker of Base79 and a former senior director of YouTube EMEA, will be joining Rightster’s executive team. Additionally, Chad Hurley, former chief executive and co-founder of YouTube, will be subscribing for placing shares under the placing and will be joining the Rightster Advisory Committee.
Charlie Muirhead, founder and chief executive of Rightster, said: “Acquiring Base79 and Viral Spiral is transformational for Rightster. Together, they more than double the number of content partners on Rightster’s 360 video distribution platform and catapult us past the one billion video views per month milestone, making Rightster the largest YouTube partner outside North America by reach and a top-five partner in North America.
“Importantly, this greater scale and expertise improves the service we will be able to offer creators and publishers, improving our ability to both grow audiences and increase monetisation and positions us as a global leader in the exploding online video market for brands and media agencies.”