Public online video company ROO Group (RGRP.OB) announced that it had finished buying the assets of Saratoga Springs-based Wurld Media. ROO describes itself as “the online video solutions company focused on meeting the specific needs of large enterprise companies globally” and “the Internet broadcast company of choice for companies seeking effective strategies for monetizing online video.” If so, its global brand-recognition strategy is apparently not yet complete. The Wurld Media assets, which ROO bought for about $4 million, will apparently provide some P2P streaming capabilities.
Some backstory: Roo announced in January that News Corp. had taken “up to” a 5% equity stake in the company and had the ability to tack on another 5% via warrants. At the time, the deal was reportedly worth $12 million, but there was a bit of confusion about what it actually meant. Wurld, meanwhile, was one of several companies trying to find a way to make money via P2P platforms, but never convinced consumers to participate. Its biggest accomplishment may have been a deal announced in late 2005 to help NBC Universal distribute some of its content; the announcement drew dutiful press coverage but it’s unclear whatever became of the arrangement, if anything.
ROO lost $14 million last year on $10 million of revenue. According to its latest balance sheet, it had $6 million of cash as of March 31–which, at the Q1 burn rate, would have lasted approximately 3 months. The company has a $63 million market cap.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.