US-based media company ActiveVideo Networks, which is backed by multiple strategic investors, has acquired peer TAG Networks.
ActiveVideo has raised nearly $200m from a syndicate that includes strategic investors Adelphia Communications, Liberty Media, Motorola, Shaw Communications and TV Guide and venture capital firm Lauder Partners.
Tag Networks has raised $30m from strategic investor WTI Ventures and private equity firms Apax Partners, Bay Partners and Mitsui Incubase. The two companies have worked together for several years, with TAG Networks providing the gaming capabilities on ActiveVideo’s CloudTV, which was designed to allow people to interact with content and their network of friends through their television.
ActiveVideo is currently in about five million homes, up from one million last year.