Rightster has announced the acquisition of Viral Spiral, the proposed acquisition of Base79 and a placing of 75 million new ordinary shares by Cenkos, to raise £42 million at a price of 56 pence per share
The acquisitions will support Rightster’s ability to achieve market leadership in online video – combining Rightster’s tech-supported 360 distribution and monetisation expertise, with Base79’s leading position as the largest YouTube partner outside North America and Viral Spiral’s expertise in social video management, licensing and brand engagement. The combined company and its customers, will benefit from a significant increase in scale: the acquisitions more than double Rightster’s existing number of customers, adding over 2,000 YouTube channels. Post the acquisitions, Rightster’s aggregated traffic will increase from 371 million video views per month to 1.1 billion.
“Acquiring Base79 and Viral Spiral is transformational for Rightster,” says Charlie Muirhead, founder and CEO of Rightster. “Together, they more than double the number of content partners on Rightster’s 360 video distribution platform and catapult us past the 1 billion video views per month milestone, making Rightster the largest YouTube partner outside North America by reach and a top 5 partner in North America. Importantly, this greater scale and expertise improves the service we will be able to offer creators and publishers, improving our ability to both grow audiences and increase monetisation and positions us as a global leader in the exploding online video market for brands and media agencies.”