Veoh Reportedly Shopping Around For A Buyer
One of YouTube’s most critical flaws when the company first started was that the video quality was inferior. This is where companies such as Joost and Veoh wanted to hit YouTube where it counted. Both Joost and Veoh had higher quality videos than YouTube, but they lacked in quantity. Last week Joost decided to focus on video platforms for companies rather than making deals with companies to stream their content.
Now Veoh is reportedly giving up on being a streaming video start-up company. AllThingsD is reporting that the company is looking for a buyer for a price that is below the $70 million in funding that they have raised over the last four years. The $30 million Series D round of funding took place back in June 2008.
Some of the previous investors include former Disney CEO Michael Eisner and Goldman Sachs. The company has not been profitable and last year alone they lost about $6 million. Veoh is also facing litigation from Universal Music Group which is accusing them of copyright vilations.
Currently there is no word on who a potential buyer may be, but considering how much traffic Veoh is receiving I would not be surprised if an acquisition takes place in the near future.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry