Sources: The FeedRoom About to Be Acquired

Written by Ryan Lawler

Tuesday, September 29. 2009 at 05:45 PM EDT 3 comments

Digg   Del.icio.us   Reddit   Email This

• Login to Rate

Online video platform provider The FeedRoom has found a buyer and will soon announce that it has been acquired, according to sources.

Sources say the company, which provides a software-as-a-service (Saas)-based platform for online video management, has made layoffs in recent days ahead of the deal's closing. The FeedRoom is expected to make an announcement about the acquisition later this week.

While we couldn't confirm the buyer or the terms of the deal, it's clear that the acquisition will mark a sad end to the company, which has spent the last 10 years operating in the online video market.

The FeedRoom has raised more than $60 million since it was founded in 1999, although it counts only $20 million after the company made a strategic shift in direction in 2004. The FeedRoom's last round of financing, announced in in July 2008, was worth $12 million and included NewSpring Capital, BEV Capital, and Velocity Equity Partners.

Although The FeedRoom upgraded its video platform and acquired digital asset management firm ClearStory Systems last year, it has had difficulty gaining traction in an increasingly crowded market for online video management.

While many other firms -- like Brightcove, thePlatform, and Digitalsmiths -- have been going after the media and entertainment side of the market, The FeedRoom has been working on serving enterprise customers, particularly big U.S. government agencies.