Redlasso is a company that used to provide clips from news programs to bloggers to embed on their own websites.  NBC, FOX, and CBS did not like Redlasso ganking their clips so they decided to sue the company.  But FOX suddenly had a change of heart.

Fox made a deal with Redlasso now.  Redlasso will be able to use video news content from 27 of FOX’s regional news stations.

Redlasso started in 2007 and was heavily used by The Huffington Post.  What Redlasso was doing was illegal.  They recorded and distributed TV content without the permission of the stations.  Last May the company received a cease and desist letter and the company ignored them for the most part.  Last July FOX and NBC filed the lawsuit against Redlasso and the site discontinued their services shortly after.

FOX’s content will be available through Redlasso starting in April.  Bloggers will be able to use clips which could be as long as 10 minutes through Redlasso.  Redlasso CEO Al McGowan started that lawsuits with all other television networks have now been settled.  The company is currently looking for ways to expand content offerings.

My guess is that Redlasso struck a deal that involves advertising revenue sharing with FOX.  We may see ads in the clips that Redlasso offers to bloggers.

[via TechCrunch]

“We’re looking not just for capital, but smart capital,” stated RedLasso CEO, Ken Hayward. “We need to be aligned with an investor who brings an air of trustworthiness within the media industry, to help us show that we’re a friend to the content producer… that we’re a solution provider.”

To make the news more entertaining, bloggers need video.  And Redlasso is the only site that allows bloggers to search for national and local TV/radio broadcasts for sharing.  Some of the hot clips on the site right now include John McCain & O’Reilly Debate Torture, [John] Kerry Yells At MSNBC Over Wright, Miley Cyrus Apologizes for Photo Controversy, and Cowboys Quarterback Tony Romo is a horrible singer.

Bloggers have to request for an account and the latest that users can search for video is around 7-8PM Central Time.  

RedLasso is based in King of Prussia, Pennsylvania.  The site makes money by sharing advertising revenue with the multimedia content producers and syndication companies.  RedLasso videos are created using Flash.

Thus far, RedLasso has raised $7.9 million from Anthem Capital, Osage Ventures, and Guggenheim Opportunities Investors.  Angel investor, Pat Croce provided RedLasso with seed capital.  And RedLasso had $1.5 million in bridge financing.  RedLasso is expecting $500,000 in revenue this year and $9 million next year.

Information Source:
[1] Private Equity HUB: RedLasso Looks to Rope New Round