Discovery to Acquire Revision35/03/2012 4:05 PM Eastern
Discovery Communications has entered into an agreement to acquire San Francisco-based digital video provider Revision3, a move that the programmer believes will allow it to expand its multiscreen efforts in a more cost-effective way.
Terms of the deal weren't disclosed. The parties expect the sale to close by June 1.
Founded in 2005, Revision 3 is a leading independent Internet digital video production company, with more than 23 million monthly unique viewers across 27 digital channels, that has also created a technology and distribution platform for production, monetization and distribution of video content to online communities.
The company's content also aligns well Discovery's top programming genres in tech, cooking and popular science.
"Discovery's mission to ignite viewers' curiosity and its history of pioneering new platforms -- from cable to HD to 3D -- make it the logical leader in this explosive new wave of digital video growth," said JB Perrette, chief digital officer, Discovery Communications, in announcing the deal. "With Revision3's industry-leading management team and roster of great talent, we look forward to cultivating more original content and fresh personalities that resonate with passionate communities online and across all platforms, while enhancing our innovative marketing solutions for advertising partners."
"Revision3 has always focused on creating compelling programs featuring authentic hosts that sit at the center of engaged and targeted communities," added Jim Louderback, CEO of Revision3, in a statement. "We're huge fans of Discovery's networks, and couldn't imagine a more appropriate company to team up with to develop the future of original web-based video."
Louderback and team will continue their leadership of Revision3 under the new ownership structure.
For this transaction, Discovery Communications was advised by Paul, Weiss, Rifkind, Wharton & Garrison LLP, while Revison3 was advised by RBC Capital Markets and Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP.