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News Corp. Invests in Online TV Firm Roo

Jan 29, 2007  •  Post A Comment

News Corp. is buying 10 percent of online TV startup ROO, whose technology powers Foxnews.com’s video offerings.

Under a deal announced Monday, News Corp. will initially receive 5 percent of ROO shares, and the additional 5 percent after it meets certain revenue-based milestones based on its usage of ROO’s services. The companies didn’t disclose additional terms of the deal.

News Corp.’s investment in ROO comes amid a flurry of fresh transactions in the online video sector. ROO last week bought a small software firm, MyVideoDaily, to gain access to MyVideoDaily’s search capabilities. In the last two weeks, Brightcove landed nearly $60 million in funding, and Veoh Networks inked deals with United Talent Agency and Us Magazine.

The activity suggests that leading players in the online video business will be jostling for position this year as they strike out strategic partners.

(Editor: Baumann)