February 8, 2008

Microsoft To Acquire Ustream.tv For $50 Million?

Duncan Riley

43 comments »

Ustream.tv is said to be in advanced talks with Microsoft to be acquired for $50 million, according to a report from Valleywag. Given it’s very early morning as the post goes live we are unable to put calls in to confirm the deal, but might have more later.

Ustream.tv is one of the first wave of live streaming service providers that includes companies such as Justin.tv, Blogtv and Mogulus. Ustream.tv has offered a complete package of streaming and post show videos, and has a strong reputation as a reliable provider of live shows and events. The company announced a deal January 29 to stream the Republican convention, and has also featured other events including shows with Republican Presidential candidate Mike Huckabee and Chuck Norris. Ustream.tv is also the home of major league live streamers including Chris Pirillo, and also scored a viral win with Walrus TV.

The acquisition, if true, does seem a little strange timing wise given Microsoft’s takeover offer for Yahoo, however Valleywag suggests it’s a pre-emptive pre-Series A deal that will allow Microsoft to showcase Silverlight to a broader audience.

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Comments

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Clintus McGintus

February 8th, 2008 at 5:31 am

The time also seems strange because Yahoo Live just launched as well. So if Microsoft is trying to buy Yahoo, why would then need Ustream?
Shoe Dog

February 8th, 2008 at 5:34 am

Maybe they decided Ustream could put more use to the 44 billion…
Duncan Riley

February 8th, 2008 at 5:35 am

Clintus
I didn’t throw Yahoo Live in the mix due to the coverage we’ve already given it, that and I don’t think Microsoft would have seen Yahoo Live coming. If it’s near deal stage I’m betting that talks would have been going at least weeks, possibly a couple of months, so it’s all pre- Yahoo Live. Given Yahoo Live’s lack of features I think Ustream.tv would be the better buy tech wise, but certainly Yahoo Live should throw at least a small spanner in the discussions.
Rajeev

February 8th, 2008 at 5:35 am

It can be a grt strategy to usurp small promising businesses and grow them with deep pockets and some precise marketing into blockbuster cash cows.

http://tekno-world.blogspot.com
Simon Rivada

February 8th, 2008 at 6:04 am

Pffft. Strange stuff seeing that Microsoft might be taking over Y! Live and would get a considerably better deal off that.
Erick

February 8th, 2008 at 6:23 am

@Shoe - I could use not even a sliver of a fraction of that 44 billion!
Spence

February 8th, 2008 at 6:31 am

Seems like a good acquisition to me. Could make some mainstream use of Silverlight, and maybe get an immediate audience for Y!Live
Tony

February 8th, 2008 at 6:38 am

Why have one if they can scoop up 2 major players in a relatively short time span. Sounds like a sweet move to me.
DanDan

February 8th, 2008 at 6:54 am

Techcrunch reporters amaze me with their disinformation strategy. Silverlight is not for live streaming. Why is it so hard to check some simple fact? Because it’s a blog and not a news site…Pphphphphph
Mike

February 8th, 2008 at 7:03 am

Odd as well as Yahoo! is said (by you) to be buying Maven Networks for $150 mil.

So the combined Microhoo company, will own Maven and Upstream.

Interesting.

Who buys Roo and Brightcove?

Since Newscorp owns a decent stake in Roo (RGRP.ob) I would think Roo to them.
Time Warner (TWX)?
New York Times?
Duncan Riley

February 8th, 2008 at 7:07 am

DanDan #9
I was quoting Valleywag on that, as is more than clear in the paragraph. That I can be held accountable for their take is amusing, Owen will probably laugh Seriously though, bugger off, you’re either illiterate, dumb, or both, given your comment.
Mario Balderas

February 8th, 2008 at 7:17 am

I stream, you stream, we all stream on Yahoostream!

Ok..that hurt my brain…need my morning coffee now.

Personally thought Youtube would get them first…
CanCar

February 8th, 2008 at 7:37 am

If it’s near deal stage I’m betting that talks would have been going at least weeks, possibly a couple of months, so it’s all pre- Yahoo Live.
New Fast Browser

February 8th, 2008 at 7:41 am

That is cool

http://www.jhatak.com/Buckler/BucklerHomePage.htm
(The Light Browser)
Jaafer Haidar

February 8th, 2008 at 7:42 am

Given UStream’s solid platform and increasing success, I’m actually surprised they haven’t been acquired already. Great move by Microsoft.

Note to Microsoft: Instead of buying Yahoo, buy the best-of-breed solid startups and create a network of great apps and services. You finally achieve your goal of being a web services powerhouse, and you get the best of Yahoo-like properties (even better) without the cultural headache. You’ll also do it for a lot less than $44 Billion.

Consider it….unless its the users you want not the technology
Martin

February 8th, 2008 at 7:57 am

Wow I remember the early days when ustream launched with their liverazzi channel and most of the time there were less than 10 people in the chat room, justin.tv was getting all the mainstream press attention and ustream didn’t seem to be attracting many broadcasters or viewers. I guess they have really turned it around now.
Marzipan from Toledo

February 8th, 2008 at 8:45 am

@11

Editors calling their readers illiterate. Nice touch.
Jordan Golson

February 8th, 2008 at 8:48 am

Thanks for the broken link to my post, appreciate it. Maybe you’re just bitter that you got scooped on this AND Yahoo Live?
Brian

February 8th, 2008 at 9:29 am

dude….looks like Microsoft is on fire….they are really trying buying everything on web (except for google)

bookmarked @ http://livbit.com
AnonTroll

February 8th, 2008 at 9:48 am

Duncan, if you’re reporting on Valleywag stories now you’ve hit a bold new level of uselessness. FAIL
Jordan Golson

February 8th, 2008 at 10:01 am

Rereading that, it comes across much harsher than I meant it. All in good fun, but GIVE A GUY A LINK. [channeling Jason Calacanis there]
Dirk Diggler

February 8th, 2008 at 10:05 am

TC is turning into a Web 2.0 Tabloid site.

You can’t confirm the rumor but still post it? No wonder Mike likes making appearances on FOX channels. Fits right in with their style of “news”.
Ronald Lewis

February 8th, 2008 at 10:25 am

If this rumor turns out being true, then it will be a hefty payday for Brad and the gang at UStream. People often ask why I chose Justin.TV over UStream (where I first caught the live video bug), Mogulus and all the other lifecasting platforms I’ve tested.

It’s simple: Broader reach. Justin.TV has excelled at building not only a premium social video experience, but also great social networking features as well. They also have, IMO, the best live video experience of any platform.

600,000 viewers to date on Justin.TV is a decent number for a guy who spends his time intimately engaging his audience, have engaging conversations about the state of our society and finding new and creative ways to leverage this emerging space for other meaningful uses.

Overall, I can say that the opportunity all of these platforms offer is priceless. Most people only seem to recognize the silly moments of lifecasting, such as women exploiting their audience for money, having sex on camera, etc., but the real opportunity here is better than anyone could have ever expected.

Having the world at our front door with live video is a relevant and exciting development in the history of telecommunications. Take advantage of it.
Stan Oleynick

February 8th, 2008 at 10:31 am

Why would Microsoft negotiate with Ustream before knowing anything about the Yahoo acquisition which just yesterday launched Yahoo Live is beyond my understanding… plus of course the source valleywag, let’s just say not the most credible out there…
Billy

February 8th, 2008 at 11:53 am

I saw this article in Valleywag: http://valleywag.com/354140/us.....microsoft.

TechCrunch does a better job of reporting, though.
Jay

February 8th, 2008 at 2:05 pm

DanDan maybe you should be checking your facts. According to this interview live streaming with Silverlight is possible http://www.beet.tv/2007/04/microsoft_silve.html
rubu

February 8th, 2008 at 2:10 pm

Instead of buying Yahoo, buy the best-of-breed solid startups and create a network of great apps and services.
Jamboree

February 8th, 2008 at 3:43 pm

For those folks that are asking why buy UStream if Yahoo has Live.

First. MS is big, so the group that wants UStream might be different than the group that wants Yahoo!.

Second. Yahoo! isn’t a done deal and it could take a year for the deal to close. MS may just want something right here, right now. Look at Yahoo… they bought TWO email companies OddPost and Zimbra when on each case they had a pretty good product and arguably are able to build those systems too.
Robert W Gilcrease

February 8th, 2008 at 4:58 pm

It seems to me that somehow this will limit or wind up costing users. To make it fit into Microsofts view of the world. How about us small guys who stream on Ustream.tv now.
Mike-Linux-NL

February 8th, 2008 at 5:09 pm

Please, don’t let that deal happen…

Otherwise it will be a proprietary microsoft product again, and the linux community will be left out again, if they are going to use Silverlight. Even tho
Novell is going to make “Moonlight” it will be not 100% compatible with Silverlight, according to the last rumours about that…..

If ustream gets taken over by Microsoft, then the linux streamers will have to look elswhere…
Tim Wright

February 8th, 2008 at 5:33 pm

Why would Ustream sell out so cheap? I always thought they were double or triple that
PXR8

February 8th, 2008 at 8:43 pm

Yeah there’s some big shopping going on right now. What does that tell you? Usually, that there’s something behind it. Another online boom coming? Winners and losers? IMO The “pie” has grown like crazy recently through new discoveries and new implications of 2.0 and I guess the big fishies are trying to snap up as much real estate as they can.
Mcnamara

February 9th, 2008 at 1:45 am

nothing about this seems true
Bejoy

February 9th, 2008 at 4:58 am

what happend, the yahoo deal did not work out
roo roo

February 9th, 2008 at 6:52 am

Ustream at $50 million. Overpriced. I can get two college kids and hack a backend. Then grab a UI jock and finish this product in 3 months.

They don’t have that big of a brand and their technology isn’t differentiated. Microsoft? what are you thinking?
Devarajan Swami

February 9th, 2008 at 7:16 am

Re: Duncan Riley’s reply:
>> Duncan Riley
>> February 8th, 2008 at 7:07 am
>>
>> DanDan #9
>> I was quoting Valleywag on that, as is more than clear in the paragraph. That I can be held accountable for their take is amusing, Owen will probably laugh Seriously though, bugger off, you’re either illiterate, dumb, or both, given your comment.

I can’t believe a blogger will insult his own readers on his own blog [assuming that it WAS Duncan Riley and not somebody masquerading]. In any case, I expect bloggers to be respectful of their audience, just like actual reporters and journalists.

So as of now, I just decided to remove TechCrunch from all my RSS feeds.
Good riddance. I will not be checking back for replies to this comment.

I can get all the news from other blogging and news sites anyway. And respectable bloggers like Om Malik and John Battelle have always treated readers with respect, even when readers expressed criticism or a different point of view.
Anderson Palmer

February 9th, 2008 at 8:35 am

Good Luck Ustream Team! Laugh at the haters and enjoy your hard work!
New Fast Browser

February 9th, 2008 at 2:14 pm

Keep it up.

Buckler Browser
http://www.jhatak.com/buckler/.....rSetup.zip
tom z

February 25th, 2008 at 5:12 pm

this “rumor” didn’t seem to incite any interest, what will ustream try now?