Discovery confirms Revision3 deal

Discovery Communications has confirmed it is to acquire US digital video provider Revision3. The US cablecaster today said it hoped to leverage Revision3’s experience in creating online video content in a cost-effective way.

San Francisco-based Revision3 was set up in 2005 by three technology entrepreneurs, including Digg co-founders Kevin Rose and Jay Adelson, with a plan to create original content underserved by traditional TV networks on topics such as technology, video games and movies.

Revision3 has distribution deals with iTunes, Google, AOL, Yahoo, TiVo and others. Speaking to C21 earlier this year, Revision3 CEO Jim Louderback said the company had more than 23 million viewers per month across its 27 digital channels, 72% of them in the valuable 18-34 demographic.

Both parties expect the deal to be closed by June 1. Financial terms were not disclosed but rumours earlier this week put the purchase at around US$40m.