AOL is buying web video startup 5Min, confirms Peter Kafka in this exclusive on AllThingsD. The price for the acquisition is estimated between $50 and $65 million. It is furthering strengthening AOL’s position in video, following the acquisition of StudioNow earlier this year.
Recently 5min has discovered its business model by providing video distribution. Video sites get paid to show related videos from the 5min network which are monetized in different ways (pre-rolls and more). The new focus has been proving itself as the company reported 10 million views a month, across 800 partner sites with their library of 200,000 videos.
5min is based in Israel and led by founder and CEO Ran Harnevo. The company raised $13 million to date.