Niklas Zennström and Janus Friis founded Joost after the success they had with Skype and Kazaa.  Joost is not exactly a success story despite all of the funding the company has raised.  From Sequoia Capital itself, Joost raised $45 million.  Now the company is in talks for an acquisition.

Time Warner is in talks with the company according to a source with the Associated Press.  Time Warner wants to buy Joost at a low price which is bad for Sequoia.  Supposedly Comcast has already turned down buying Joost beause they already own a competing service called Fancast.  Viacom and CBS both have also invested a considerable amount in Joost which makes a potential acquisition from a competing network even more interesting.

Joost initially started as a P2P high-quality video streaming software, but YouTube came out of nowhere back then and people lost interest in the service.  Joost has switched to a web version since then.  More as the story develops.

Related Posts:

• July 7, 2009 -- Former Joost CEO Mike Volpi Joins Index Ventures As A Partner
• June 30, 2009 -- Joost Is Further Fading Into Irrelevance
• January 19, 2009 -- Inauguration Day: Twitter Doubling Capacity, Microsoft Partners With CNN, Flickr Hosting A Wine Party, and Live Streaming Everywhere
• September 18, 2008 -- Joost Is Now Officially Web-Based
• September 5, 2008 -- Joost Killing Off Desktop Application. Good Riddance!