Consolidation continues. Video data and sharing platform Epoxy, has been acquired by video marketplace Vemba, VideoInk has learned. Both companies declined to reveal terms of the deal, but sources close to both indicate that the deal came together at a crucial time for Epoxy, when runway was tight. Others have told VideoInk that the deal was a “fire sale” pushed to a fellow Upfront Ventures portfolio company as an almost last resort.
Regardless, the merger of the two companies marks a sensible move for both — Vemba, a technology that allows publishers to source and distribute video for additional revenue streams a la Vidible, can now build out its product offering to include instant distribution across social media channels like YouTube, Facebook, Twitter, Instagram and Vine as well as a one-to-one communication pathway between publishers and consumers. To start, Epoxy will remain separate given its focus on creators versus premium brands and publishers. And Vemba and Epoxy will continue to service the 70K creators and 87 MCN’s in Epoxy’s client list.
Vemba also inherits a strong engineering team, which will be folded into Vemba’s existing roster, and a significant presence in LA. Reigning Epoxy CEO Juan Bruce will step into an advisory role while Epoxy co-founder and Chief Product Officer Jason Ahmad will remain as part of the executive team as SVP of Engineering. Both companies deny Bruce’s role to be anything but voluntary.
“At Epoxy, we built industry standard video engagement and optimization tools for the MCN and creator market. At the same time, Vemba built out a best-in-class infrastructure for publishers and TV networks to leverage video content,” said Bruce.
Vemba CEO Garrick Tiplady, echoed the statement, saying that the deal is something that has been in negotiation for months and will provide a new layer of data insights for their existing client base of nearly 100 publishers like Conde Nast and Vice.
But the product Epoxy built upon setting up shop in 2012 is tailored more at YouTube and social video creators than professional publishing platforms and media companies, a position that sources close to the company say contributed to Epoxy’s struggle in making the business profitable.
To date, the company has raised $8.5M in venture funding from companies like Time Warner Investments, Advanceit Capital, Downey Ventures and BDMI, in addition to Upfront Ventures. The latter two have also invested in Vemba, which has taken $8.3M in venture since launching in 2015.
Looking at the numbers side by side, one might conclude Vemba raised to be able to make a side by side offer to match Epoxy’s investment taken to date.
And over the course of the past year, Epoxy has been in the market shopping the businesses with competitive offers on the table before landing the deal with Vemba.
“The merging of the platform[s] allows us to now be a single distribution point to manage across all platforms and all channels,” Tiplady told VideoInk.
“For us, that’s the broader vision. We think it’s an amazing opportunity to be able to provide what no one else in the market has that capability set today. And that is the Macro view. From a tech perspective, design, and business perspective, it just made a lot of sense.”