Online video network Rightster is set to acquire UK-based online media company Base79 for up to £50m ($85.6m), providing an exit for online media and entertainment platform Chernin Group.
Founded in 2007, Base79 operates what it claims is the largest YouTube network outside of the US. It has more than 1,000 partners including news agency Reuters and dance music and clubbing brand Ministry of Sound, and receives more than 750 million views each month.
Rightster plans to buy Base79 using £25m ($42.8m) in cash and up to £25m of Rightster shares that would be transferred a year after the deal closes, subject to earn out conditions.
Chernin paid about $10m for a 28% stake in Base79 in November 2012, after venture capital fund MMC Ventures led a $4.3m series A round in 2011.
Rightster revealed the proposed acquisition at the same time as it announced it had acquired UK-based online video marketing firm Viral Spiral in a £4.1m ($7m) cash and share deal.
Both acquisitions are set to be supported by a 75-million share placement by Rightster that is expected to raise £42m ($71.9m).