Crowdsourced news distribution startup Newzulu has entered into a binding agreement to acquire Toronto-based media company Filemobile for approximately AUD$5.06 million (CD$5 million), depending on a number of conditions. To fund the acquisition, Newzulu will undertake a capital raise, details of which will be released at a later date. Newzulu will re-comply with Chapters 1 and 2 of the ASX Listing Rules in respect to the acquisition.
The acquisition of Filemobile, a software company that provides solutions to media outlets and brands for the gathering, curation and publishing of user-generated content, brings with it a list of major white-label media clients including AAP, Fox News, Wall Street Journal, USA Today, Hearst TV, iTV, London Live, Network Ten Australia, as well as global brands like Kraft, Under Armous, Cisco, Allrecipes.com and JC Penney, among many others.
Founded by Alexander Hartman and Peter Scarf in June 2013, Newzulu is a platform that houses over 100,000 professional and citizen journalists who share validated news photos, videos and text. The acquisition of Filemobile will assist Newzulu in its plans to establish itself in the US market, in which the news and content marketing industry is estimated to generate over USD$50 billion in annual revenues in 2014 alone.
“With the explosion of rich media, the combination of “always on” 24/7 news cycles and multiple communications distribution platforms, audiences require quality timely content that is constantly updated,” said Hartman in a media release distributed yesterday.
“The acquisition of Filemobile is consistent with Newzulu’s growth strategy and further strengthens the company’s product solutions and global delivery platform.”
The cornerstone of Filemobile’s solutions is its Media Factory platform which supports the delivery of rich media. The Media Factory platform focuses on four pillars:
- gather content (videos, photos, audio and text) via websites, mobile, email, and Instagram;
- curate social content at scale;
- publish content with broad integrations into third-party Content Management Systems (CMS), Content Delivery Networks (CDNs) and video platforms via FTP, API or RSS; and
- engage with audiences by amplifying broadcasting reach through extending interactions to multiple channels, including Facebook and Twitter.
Completion of the Filemobile acquisition is subject to and contingent upon the satisfaction (or waiver) of a number of conditions by January 31st 2015, including: “no governmental entity issuing any order which prohibits the Filemobile Acquisition; and Newzulu obtaining all necessary regulatory and shareholder approvals, including shareholder approval pursuant to ASX listing Rule 11.1.2.”
Newzulu currently has offices in Sydney and Auckland, and bureaus in London, New York, Los Angeles, Toronto and Montreal. The senior management of Filemobile will join Newzulu’s global executive team following the acquisition.
Based on current statistics, Newzulu and Filemobile will collectively achieve over 50 million unique visitors per month, 200,000 video and photo uploads per month and will have over 8 million registered users.
Image: Alexander Hartman, Co-Founder of Newzulu. Source: Wikipedia.