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Sports media company Minute Media, home to brands including The Players’ Tribune and FanSided, acquired STN Video Wednesday morning, part of a bid to further expand its digital footprint.
Minute Media declined to provide financial specifics. The acquisition, its sixth, was funded in part by HSBC Innovation Banking and BlackRock, according to a representative.
“This acquisition will enable us to join our scale and become a leader in terms of sports video,” according to Andres Cardenas, chief marketing officer of Minute Media. “That allows us to vastly expand our monetization opportunities.”
The purchase will provide Minute Media with instant access to the STN Video library of more than 2 million videos, as well as its partnerships with leagues including the PGA Tour, the United States Tennis Association and F1, according to Cardenas.
The acquisition is the latest indication of the rising value of digital video in the online advertising space, as well as the durability of consumer interest in sports media.
STN Video brings expanded video
In acquiring STN Video, Minute Media unlocks a vast archive of sports highlights, in addition to the distribution network that STN Video has cultivated over its lifespan. This will allow it to offer advertisers great scale when selling video advertising, according to Cardenas.
“There is an increased appetite for premium digital video from marketers,” Cardenas said. “What is difficult is producing that video in a sustainable manner. With STN Video, we unlock that.”
STN Video has also penned rights and distribution agreements with domestic and international sports leagues, a key part of its appeal. These deals, while more affordable than distribution deals with leagues like the National Football League, allow Minute Media to broadcast highlights from sports games available to only a limited number of partners.
Minute Media moves toward profitability
Minute Media is one of several sports media properties looking to capitalize on persistent consumer interest in sports.
Across its portfolio, the media company reaches 200 million monthly users in 14 markets, according to Cardenas. It has not achieved profitability—an increasing focus from investors following the market correction in 2022.
But the company has steered itself, financially, into a position that has allowed it to make acquisitions in a down market—an advantage it plans to take further advantage of, according to Cardenas.
“Media companies should just be focused on top-line growth and revenue,” according to Cardenas. “Our strategy has built momentum and trust with our investors, which has allowed us to take this step to enhance our content offering.”
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