Online Video Company KiT Raises Financing

  • May 9, 2008
Online video company KIT digital has raised $15 million through a private investment in public equity (PIPE) financing.

Known as Roo Group until last month, KIT digital is using the funding to complete its acquisitions of the Australia-based interactive Sputnik Agency and Kamera Content AB, an Internet and mobile TV provider in Stockholm, Sweden.

Faced with mounting financial woes last year, Roo brought in former JumpTV executive Kaleil Isaza Tuzman to replace CEO Robert Petty and cut 21% of its staff in December. Since then, KIT has refocused on its core business of powering video on corporate and consumer Web sites. Its clients include News Corp., Verizon, K-Mart and NASDAQ.

The company said a total of 75 million common shares were sold as in the private placement. The company's shares were down 19% Thursday, closing at 28 cents.

--Mark Walsh



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