Rightster buys MMC's Base79

Rightster will make an upfront cash payment of £25m, adjusted for net cash and working capital following completion up to a maximum additional payment of £1m. A subsequent payment of up to £25m is to be made based on various earn-out targets in the period ending 30 April 2015.

Rightster was drawn to the acquisition as a means of strengthening its YouTube business and pursuing cross-selling opportunities. Rightster intends to create a digital distribution solution for content creators.

Previous funding
In 2011, MMC led a £2.75m funding round for Base79, with the company's management team and existing angel investors also participating. The following year, the company received a $10m equity injection from US media company Chernin Group, with a further commitment from MMC. Chernin's acquisition was reported to represent a 28% stake, valuing Base79 at $36m.

The company is understood to have raised around $16m in institutional funding in total.

Company
Founded in 2007 with headquarters in London and New York, Base79 specialises in YouTube rights management, audience development, media sales and brand partnerships. The company is the largest YouTube multi-channel network outside of North America, reporting around 760 million views per month from 1,000 partners. Base79 has 1,500 YouTube channels under management, and generated £6.8m in 2013.

The company employs 60 staff at offices in London, Berlin, Madrid, Paris, Sydney and LA.

People
Rory Stirling is a partner at MMC.

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