The deal, which AOL said closed on Friday, is valued at $36.5 million in cash and stock, and AOL said StudioNow would continue to develop its existing business as an independent provider of online video content creation, management, storage and syndication services for other commercial enterprises.
"Premium original video creation is a fundamental part of AOL's strategy to offer consumers world-class, stimulating content at scale and the integration of StudioNow into Seed.com will enable us to increase our video content/offerings significantly," stated AOL chief Tim Armstrong.
Founded in January 2007 and headquartered in Nashville, TN, StudioNow currently connects its clients with its more than 3,000 freelance filmmakers, editors, animators, voice talent and writers/producers to create quality, professional video.
AOL's newly launched content management system, Seed.com, assigns, buys and distributes video programming for all of AOL's properties.
Ummm, Studionow has been around for two years, features only 8-9 videos on their site and is primarily an aggregator for freelancers. AOL bought them for HOW MUCH? Maybe it was the "Hometown Hotties" shoot for Maxim that brought in the big gameshow bucks. Yo, AOL - there are MUCH more robust delivery platforms and video creation services than THIS johnny-come-lately. Kinda reminds me of the 4 million dollar purchase of "Spanker.com" in 1997-98. Bet you thought we'd forgetten about that one too.