In yet another shake up within the online video space New York City-based web video and streaming pioneer, The FeedRoom, has been acquired by Germany-based web company KIT Digital (KITD) for approximately $9.8 million worth of stock. A long-time player in the online video market, The FeedRoom remained at the forefront of online video communications for the last decade. Since launching in 1999 as a video aggregation site, The FeedRoom raised at least $66 million with $12 million just two years ago. According to Dan Rayburn, The Feedroom had agreed to the deal some time ago and changes have already taken place with the departure of top leaders, CEO Mark Portu and SVP Daniel Webster, and the pending closure of the San Francisco office. Many in the online video news space commented that it was not a good day for The Feedroom investors who ended up losing the majority of their investments. Dan Frommer called it a "Web Video Firesale", Ryan Lawler noted it "marks an inglorious end to The FeedRoom" and Dan Rayburn pointed out that being acquired was really their only option. Dan said this about the deal: "On paper, the services of KIT and FeedRoom fit nicely together and considering that KIT paid FeedRoom investors with all stock, it was an easy deal. While the deal makes sense on paper since it gives KIT a U.S. presence, enterprise and government customers, and all of The FeedRoom's technology, the success or failure of this acquisition will all come down to the integration of the two companies. KIT has a challenge ahead of them since they are doing multiple acquistions and integrations and can't yet know how much of The FeedRoom's revenue will remain come next year." In 2004, The Feedroom transitioned to a SaaS (software-as-a-service) video platform for video management tools and went back to it's roots within the last year to power enterprise video with the FeedRoom 4.0 Enterprise Video Platform. The company has provided B2B video and digital asset management solutio From Collection: klessblog's ...