While the value of the deal was not reported it is estimated at up to $65 million.
AOL chairman and CEO Tim Armstrong said, “… AOL is building a video ecosystem for the next decade. 5min Media is the perfect complement to our powerful video capabilities – it provides a missing piece in the AOL value chain that completes our end-to-end video offering from content creation through syndication and distribution to the consumer experience and monetization.”
5min Media was founded in 2007 by Ran Harnevo, who serves as chairman; Tal Simantov, chief marketing officer; and Hanan Laschover, chief technology officer. It’s a platform for instructional videos in a variety of fields that enables people to share their knowledge by uploading videos lasting up to five minutes.
The company has raised $13 million to date, reportedly from venture capital funds Spark Capital and Globespan Capital, along with private investors. The private investors include Nehama Karpol, Ofer Lazovski, and advertising agency Adler Chomsky’s Grey Interactive Israel.
This latest AOL acquisition in Israel follows ICQ-developer Mirabilis, Relegence, Yedda and Quigo.