Live video streaming startup Ustream.tv has raised $11.1 million in Series A funding from Doll Capital Management and Band of Angels, NewTeeVee reports. Founder John Ham says that effectively rules out a near-term acquisition by Microsoft (MSFT), which was supposedly in talks with the Valley-based startup.
Then again, if Microsoft was really going to shell out $50 million for the company, then Ustream and its backers ought to take it. This is a rough, unproven business, and it’s unclear how how Ustream or any other live video streamer is going to make it as a standalone company.
Ustream tells TechCrunch it will use the money to speed up product development, and we assume a hefty chunk of the cash will go to infrastructure, bandwidth, etc.
The company boasts 260,000 registered users, but says they only stream 8,000 to 10,000 broadcasts a day — 400 to 600 concurrently. (Average length: more than an hour.) Viewers watch more than 2 million hours of live video per month.
Ham projects his site will be profitable in the next 12 months. (We’ll see about that: Banner ads are the only money-making scheme he tells NewTeeVee’s Lis Gannes about.) The company had previously raised $2 million from angel investors.
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