Brightcove Inc., a Boston company known for its Internet video platform and online video tools, said it has agreed to buy nearly all the assets of Unicorn Media, a provider of cloud video ad insertion technology.
Based on a $14 price per share of Brightcove common stock as specified in the purchase agreement, the transaction is valued at about $49 million, Brightcove said in a press release. Under the terms of the agreement, the purchase price consists of about 2.9 million shares of Brightcove stock and about $9.0 million of cash used to pay transaction and other expenses of Unicorn Media.
In a statement, Brightcove chief executive David Mendels said: “We believe that online video has the potential to surpass traditional TV by offering mass personalization, superior ad targeting, and frictionless distribution to more screens in more locations. However, media companies are struggling to effectively deliver ad-supported video content to a fragmented landscape of platforms, including mobile devices, set top boxes, connected living room devices, and a growing number of PCs that have ad-blockers installed. Through the acquisition of Unicorn Media, Brightcove will empower media companies to address these challenges by offering the most comprehensive suite of cloud services for delivering and monetizing online video content to the broadest range of devices.”
Brightcove’s press release noted that Accustream Media has estimated that the online video advertising market represented $10.4 billion US dollars in worldwide spending in 2013.