Discovery Communications has jumped straight into video content creation by acquiring Revision3 in a deal reportedly worth at least $30 million. Discovery said the new capabilities this represents were part of the company’s strategy of being the number one nonfiction media company on all screens.
According to the New York Times, the acquisition does not represent a massive amount of money for Discovery, which has a market cap of $24 billion. The deal was preceded by a lot of speculation, with the first report coming from TechCrunch.
Revision3 was founded in 2005 by Kevin Rose (Digg, TechTV), Jay Adelson (Digg, Equinix) and David Prager (TechTV). As AllThingsD’s Peter Kafka noted, this makes the third company founded by Rose that has been sold within the past several weeks.
Jim Louderback, former editor-in-chief of PC Magazine and a veteran of TechTV, joined Revision3 as CEO in 2007. Louderback and team will continue their leadership of Revision3 under the new ownership structure.
Revision3 brings with it more than 23 million monthly unique viewers across 27 digital channels, delivered over its own technology and distribution platform that powers the scalable production, monetization and distribution of video content for passionate online communities. One of the 10 largest networks on YouTube, Revision3 also has distribution in place with more than 40 other partners including iTunes, Google, AOL, Yahoo!, TiVo, Roku, Boxee, CNET and Zune.
The company counts Greylock Partners, Marc Andreessen and Mark Cuban among the investors from whom it raised $10 million.
“Discovery’s mission to ignite viewers’ curiosity and its history of pioneering new platforms – from cable to HD to 3D – make it the logical leader in this explosive new wave of digital video growth,” said JB Perrette, chief digital officer, Discovery Communications. He added that Discovery intends to use Revision3’s management team and talent roster to cultivate original content and fresh personalities “that resonate with passionate communities online and across all platforms, while enhancing our innovative marketing solutions for advertising partners.”
Discovery Communications is a leading nonfiction media company, reaching more than 1.5 billion cumulative subscribers in over 200 countries and territories. Its more than 140 worldwide television networks are led by Discovery Channel, TLC, Animal Planet, Science and Investigation Discovery, as well as U.S. joint venture networks OWN: Oprah Winfrey Network, The Hub and 3net. It also owns and operates a portfolio of digital media services, that includes HowStuffWorks.com.
Discovery Communications – press release
New York Times – Discovery Is Said to Pursue Revision3, a Web Video Company