Rightster acquires Base79 for $42-$85 Million

[Shane]

http://www.tubefilter.com/2014/07/08/rightster-base-79-viral-spiral-acquisition/

We're up to what now.. 5 MCNs buyouts so far this year.

I thought of Base79 after the BigFrame acquisition because they're another MCN that seems to be making a loss after heavy investment into R&D.
Still, congrats to them.

 

[Michael]

R&D? Research and development? Or is that a channel?

Thats a lot in one year, I had only ever heard of Rightster because of @Symph being partnered with them, I hadnt heard of them other than that up until now.

 

[Symph]

well this is odd. What does that mean for me? LOL

 

[Shane]

R&D? Research and development? Or is that a channel?

Yes, Research and Development.

Technology/ Development is probably one of the core elements of an MCN.
Nearly half of the MCNs I look at have a loss in there annual P&L mostly down to development costs.

Like if you look at Maker, Fullscreen, BroadbandTV, Freedom, Base79 etc they'd all have dev teams of 10-30 people..

 

[Michael]

Thats a lot of devs that, I didnt expect anywhere near 30 people. 5 would be what I would have guessed at.

 

[Symph]

To me this thread might as well be in a different language.

 

[markkaz]

It is interesting that all of these MCN's are losing money yet they still get acquired. I'm not surprised that they include 'performance' requirements to be met before a chunk of the money/financials are transferred.

 

[Charlie Jacoby]

We were with Base79 and now with Rightster. I saw them this week - and am properly impressed. Love YouTube tho we do, Rightster is good across all kinds of video platforms. It is much more the kind of management company I think all MCNs need to become... and they have table football, natch.