Google Officially Acquires Next New Networks

Posted Mar 8, 2011

Google Inc. (NASDAQ:GOOG) subsidiary YouTube has officially acquired Next New Networks, a web video production company that creates some of the best known viral videos.

?We want to make as clean a line as possible for us to build the platform on YouTube and then let the content production happen with our partners,?
stated YouTube director of global content operation Tom Pickett.

Google is going to spend less than $50 million to acquire the web video studio company according to sources with The New York Times. Producing original programming is becoming increasingly important as YouTube is facing competition from Netflix, Hulu, and iTunes.

Through the acquisition, YouTube will be starting a new program called YouTube Next. YouTube Next will be helping transition amateur video producers into YouTube ad revenue sharing partners. Next New Networks receives about 2 billion view per month.

Next New Networks created the video shows Barely Political and Indy Mogul. Next New also produces videos for The Gregory Brothers, who are best known for creating the Bed Intruder Song.

Next New Networks started in 2007 and raised $26 million from Spark Capital, Goldman Sachs, and Fuse Capital. Next New Networks is based in New York and will maintain their offices there.

[New York Times]