News Corporation has become a strategic investor in online video company ROO Group, for an estimated $12 million (£6 million).
Roo Group currently handles video distribution for the News Corporation’s
The Times and The Australian online versions.
Under the agreement News Corporation will receive up to a 5% interest of the current fully diluted shares in Roo, and up to an additional 5% interest upon News Corporation achieving certain revenue-based milestones in its usage of Roo’s products and services or as a direct investment through an exercise of warrants.
Robert Petty, CEO and Chairman of Roo Group, said: “We are excited to be working with News Corporation to further harness the enormous opportunity of online video across its global network of prestigious media brands. We are further encouraged by News Corp’s proven track record of identifying and partnering with online leaders early in their growth.”
Jeremy Philips, executive vice president, office of the chairman, News Corporation: “News Corp looks forward to building on its successful relationship with Roo to continue the growth of News Corp’s video assets in the digital marketplace.
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