Big Media will Pay for Online Video Companies with "Vertical" Audiences

With the IPO market effetively closed, the most viable exist scenario for venture-backed online video companies is a sale to an established media concern. So what do acquirers want? According to CNN.com general manager K.C. Estenson, while CNN has a huge audience, it needs verticals, audiences with particular audience categories. He made his comments at the Beet.TV Online Video Roundtable in New York late last month. Charlie Tillinghast, president and publisher of msnbc.com said that the company's to be attractive to purchased have to have revenue model. He adds other values are cash position, proprietary technology and a unique editorial focus. In the current financial climate, Charlie says that acquisitions by companies with cash will accelerate for start-ups willing to settle for lower valuations then they were expecting. Charlie was questioned by my co-moderators Erick Schonefeld of TechCrunch and CNET News.com's Dan Farber -- Andy Plesser , Executive Producer

Blip | November 12, 2008

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