GazProm Media Acquires RuTube

November 19th, 2008 at 12:00 am

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Apparently, video sharing sites can sell at a nice price where ever you are.  Russian media giant GazProm has just completed their acquisition of the RuTube, a russian video site aspiring to be YouTube.

Don’t fret, Youtube is still number one in Russia.  RuTube on the other hand is seeing some significant growth in its local market.  this growth of course attracted GazProm to acquire them for about $15 Million.  The price tag is not as ridiculously humongous as Youtube’s $3++ billion, but it’s still a great deal for RuTube given all the other video sharing sites around the web.

Anyway, Andrei Taraschuk of Umapper translated the Russian news story on the acquisition. (Thanks to TechCrunch)

Gazprom-Media completed the acquisition of video service RuTube. The news came today from TNT – Teleset (TNT-Telenetwork) is the largest television network in Russia. According to sources inside TNT, RuTube is going to be headed by TNT’s Michael Ilitchev.

Ilitchev told that RuTube will continue its focus on three main areas: video service, online video hosting, media platform. Down the road RuTube might expand its services to brands like RuTube movie, RuTube sport, RuTube music, RuTube news, RuTube humor.

Ilitched pointed out that RuTube founders will continue their involvement in RuTube from the technical side. The rest of RuTube team will continue as subcontractors to support, develop and host the project.

The exact acquisition amount is yet unknown.

It took Gazprom-Media over a year to purchase RuTube. Gazprom-Media announced their acquisition plans back in June 2007, the legal (purchase) process was started in March of 2008. Russian newspaper Kommersant (Коммерсант) wrote that Gazprom-media valued RuTube at 15million USD and had plans to become primary shareholder. It was expected that after the acquisition, RuTube will start hosting videos from TNT and other media properties of Gazprom-Media.

RuTube is the biggest video hosting service in RUNET (Russian internet). According to Gallup, in September 2008, RuTube had over 4mln visitors. Over 5,8 had watched videos.