AOL wants to become a leader in the online video business — a difficult notion considering it doesn’t own a major platform like YouTube, or a ton of content like ESPN.
Still, AOL is quietly snapping up the nuts and bolts of this market. It took another step toward that goal with the acquisition of online video syndicator Vidible. The purchase, announced on Monday and said by Recode to be worth $50 million, adds to previous AOL deals that acquired companies such as Adapt.tv, Convertro and 5Min, which have helped make AOL a major middleman in the industry.
The pivot to online video has been the goal of AOL CEO Tim Armstrong, who has had to decide what to do with the shrinking but still sizable income from its dial-up service. AOL now competes with the likes of Google at the top of the video ad market.
AOL is far from the only company looking to get into the space. Yahoo recently purchased ad platform Brightroll for $640 million.
The addition of Vidible, which primarily acts as a marketplace for video creators to sell content, provides a layer of vertical integration to AOL’s video business. Instead of just serving ads, AOL will also grow out its place in the buying and selling of the actual content.
“AOL is focused on transforming the digital media environment by creating an open marketplace for video,” said Dermot McCormack, president of AOL Video, in a press release.
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