MyVideo gobbled up by Pro7 in early exit for EFF
Want to guess what happened: Pro7’s SevenOne got 30% of MyVideo for some amount of cash (say €6-10M). When the company ran out of cash, the screw was turned and some deal was struck/ forced which made sense for the Samwer angels and CEO Christian but in my book means Myvideo got sold well short of its true potential. Pro7 got the German video sharing leader for roughly €25-30M: great deal, but only if they (Pro7) don’t fuck it up, which I bet they will do.
Of course I am involved in Daily, but frankly I agree with the comments on blognation:
- The complete lack of imagination to leverage the platform for anything but sexy and funny
stuff is amazing. Germany’s largest television network has Germany’s
largest video sharing site at its strategic disposal and all they have
come up with so far is a weekly television show called Die MyVideo Show
which runs since January on Sat.1 which presents the funniest videos
from MyVideo users on the television side and a few special channels on
MyVideo which largely provide two minute clips from a few television
It remains a great deal for the angels and management (as highlighted on their blog at Deutsche Startups) since the company was only started early last year and pumped up rapidly with great cash efficiency to become the German leader. So the Samwer brothers dealmaking aura remains intact :-) And Christian did a great job of building up the asset and getting an early exit. Well done to these guys.
- “Mit diesem Deal beweisen wir einmal mehr unsere besondere Bedeutung
als führende Frühphaseninvestoren im deutschen Internet. Der Verkauf
von ‘MyVideo’ unterstreicht die besondere Attraktivität des European
Founders Fund als starker Partner der Gründer”, sagt
EFF-Geschäftsführer Oliver Samwer
But there are two important lessons here:
- You don’t build a video sharing star by ramming PopIdol down the throat of your community or fast rotation ads on TV
- Be careful with industrial partners but before you are self sustaining
It’s redolent of StudiVZ, which raised eyebrows when it got sold for €100M but these days generates over 2.5BN page views per month and is still growing like a train. Yet again, Europe.com sells out too early. It fits the EFF’s seed stage model investment model, but we need more €500M exits.