AOL Buys Video Search Firm for $50 Million
By Davis Freeberg
AOL recently completed an acquisition of Truveo, a video search firm that was recently launched last September. According to PaidContent.org, they suspect that the purchase price was nearly twice as much as the $25 million that they paid for Weblogs Inc.
The purchase is interesting because AOL is not buying the traffic and community from the site, as much as they are really acquiring the technology that drives their video search results.
“Wow, I have it from reliable source that the deal was indeed more than the Weblogs Inc deal of $25 million. And this for what essentially is a technology deal, since it is still very early days for the company and industry in general to pay for a brand name and audience. The general consensus among the bidders (which included AskJeeves, who looked at the company very closely) was that this was the best video search technology among the ones out in the market…Blinkx was a lot of hot air, but not much more (not my words..). So AOL paid for the superior technology… “
I tried out Truveo and have to admit that I was pretty impressed with their search results. I was a little annoyed at being forced to watch a commercial before seeing the clip, but I understand that this is the way that the market is headed and I expect to see advertising eventually make it’s way into all of the video search engines.
Interstingly enough, Truveo also includes an “after dark” section which features more racy videos. This seems like a smarter strategy then allowing sites like the babes of youtube to leech their traffic from you.