Google Closes In on Online Entertainment Programming Network 'Next New Networks'

Google is in late-stage talks to acquire video website Next New Networks Inc. According to people familiar with the matter, "A deal could be unveiled in the coming week." "The Internet giant is expected to pay in the tens of millions of dollars for the New York-based company, seeking to acquire some expertise in landing […]

Google is in late-stage talks to acquire video website Next New Networks Inc. According to people familiar with the matter, "A deal could be unveiled in the coming week." "The Internet giant is expected to pay in the tens of millions of dollars for the New York-based company, seeking to acquire some expertise in landing more professional content for its video site, YouTube, reports the Wall Street Journal."

Google is already dominant in Web video through YouTube.

"Founded in 2006, Next New Networks creates its own shows, but today a greater amount of its content comes from teaming up with other web-video creators, distributing shows through YouTube and other partners. "

Interestingly, the company has over 5 million subscribers, according to the site, yet the WSJ said it "was struggling to generate meaningful amounts of revenue from advertising, according to industry executives, and recently raised $1 million in debt financing".

A deal would also put YouTube into the business of overseeing creators of digital content in addition to aggregating videos created by others. However, a person familiar with the deal said YouTube isn't expected to invest in being a studio.

With the traffic volume Google would no doubt be able to use its advertising base to help solve that problem. Next New Networks works with YouTube to promote their content.

[tags]wsj,web video, video creators,entertainment network,entertainment programing[/tags]

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