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Source：Warmth Information Network Editor：Deals Time：2025-06-26 05:07:45

Verizon is Watch Her True Story 9 Onlinetaking over Vessel, first by buying the online video startup and then by shutting down the service.

Jason Kilar, former CEO of Hulu, launched the service in March 2015 with the hope of attracting YouTube stars and providing a similar hub of short-form video content. Viewers could watch videos for free with ads or pay a monthly or annual fee to have early access and no ads.

SEE ALSO: Remember that $4.8 billion Yahoo deal? Verizon is having second thoughts

Kilar planned to attract top YouTube creators with more cash. He claimed, in an interview with CNBCat launch, that creators could earn $50 per 1,000 views for a video on Vessel compared to $3 per 1,000 on YouTube. That translates to nearly 17 times the revenue.

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While the startup was still in stealth mode, Kilar raised more than $130 million from high-profile backers including Benchmark, Greylock Partners and Amazon CEO Jeff Bezos' venture capital arm.

In a blog post about the acquisition, Kilar and Chief Technology Officer Richard Tom cited Verizon's ambitions in mobile video as an alignment in beliefs:

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It has been incredibly fun to brainstorm ways technology can power a great video experience globally, to dream up ways to improve video advertising and to make those ambitions a reality. At the same time, Verizon, the largest wireless service provider in the US, has made clear their convictions about the future of online video. They share our belief that internet protocol will inevitably become the dominant way consumers access great video experiences.

For Vessel subscribers, the service will shut down on Oct. 31. Annual subscribers will receive a refund, and monthly subscribers will get paid back for the month of October.

Vessel never disclosed how many subscribers it had.

Terms of the deal were not disclosed. Recodereported that Kilar will not take a longterm position at Verizon. Tom will join as CTO of Verizon's digital entertainment efforts, which includes free mobile app Go90.

Other members of Vessel's team will also move to Go90 and Verizon's other mobile efforts, according to the blog post.

SEE ALSO: Yahoo dishes the details behind its sale to Verizon in 360-page legal filing

For Verizon, acquiring Vessel follows several moves the company has made in its effort to become a top platform for mobile video and online advertising. In 2015, Verizon bought AOL for $4.4 billion. This year, Verizon agreed to acquire Yahoo's core internet businesses for $4.83 billion this year, but the deal has yet to close amid a massive data breach of 500 million Yahoo accounts.

Speaking at the WSJDLive conference in Laguna Beach Wednesday, Verizon Executive Vice President Marni Walden said that her company hopes to finalize the deal with Yahoo within the next 60 days.

AT&T is also looking to build out its own content offerings in mobile video. The company has agreed to buy Time Warner for $80 billion, creating one of the most powerful media companies in the world.

Topics Verizon YouTube

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