Minute Media Acquires Indian AI Sports Highlights Startup

Minute Media Acquires Indian AI Startup VideoVerse

Minute Media, a media company with backing from BlackRock and Goldman Sachs, has announced the acquisition of VideoVerse. VideoVerse is an Indian AI startup specializing in extracting highlights and generating content from sports footage.

VideoVerse’s Client Base and Founding

VideoVerse serves a prominent clientele within the sports world. This includes major tournaments like the Indian Premier League and Women’s Premier League (cricket), as well as FIFA+ and broadcasters Nippon TV and Clubber TV.

Founded in 2016 by Vinayak Shrivastav, Saket Dandotia, and Alok Patil, the Mumbai-based company has secured $105 million in funding from investors such as Bluestone Equity Partners, A91 Partners, Alpha Wave, Evolvence India, and Moneta Ventures.

Deal Valuation and Strategic Importance

Although the specific valuation remains undisclosed, sources indicate that VideoVerse was valued between $200 million and $250 million during its last funding round in 2023. Minute Media’s acquisition is reported to be within a comparable range.

Asaf Peled, CEO of Minute Media, stated that this acquisition represents the company’s largest to date, both in terms of financial value and the size of the acquired company.

Minute Media’s Growth Strategy

Minute Media has consistently expanded through strategic mergers and acquisitions. Previous acquisitions include The Players’ Tribune, FanSided, Mental Floss, and STN Video.

VideoVerse’s Evolution and Initial Focus

Initially, VideoVerse developed a diverse range of AI tools. One early application involved detecting potentially sensitive content, like smoking or drinking, for use by Indian film certification boards.

The company also explored object identification technology, applying it to e-commerce platforms to recognize items within videos. However, the startup ultimately shifted its focus to video editing and detection tools specifically for sports broadcasting.

The Shift Towards Sports Content

Vinayak Shrivastav explained that the company’s entry into the sports sector was prompted by a need from Hotstar (now Jio) for a solution capable of identifying key moments in sports events, particularly cricket.

Subsequently, VideoVerse streamlined its offerings, concentrating solely on video-editing features tailored for sports content creation.

Financial Performance and Business Model

VideoVerse operates on a Software-as-a-Service (SaaS) model, charging clients based on the volume of footage processed. The company has achieved $65 million in revenue and maintains a robust EBITDA margin of 35% to 40%.

AI-Powered Content Generation

Prateek Sharma, VideoVerse’s chief strategy officer, highlighted the recent launch of new AI-powered tools. These tools enable clients to define rules for automated content generation.

For example, a broadcaster could automatically create and publish a highlight reel of all three-pointers scored by a specific player during a basketball game on social media platforms.

The platform also incorporates AI-driven translation capabilities, allowing sports organizations to reach a global audience.

Core Technology and AI Models

While the platform leverages third-party AI models, VideoVerse utilizes its own proprietary model for identifying crucial moments within a game.

Synergies and Revenue Generation

Minute Media’s primary motivation for the acquisition is to integrate VideoVerse’s technology with its existing publisher network. This will facilitate improved content distribution across various sports properties and enhance ad revenue generation.

Reach and Distribution Capabilities

Minute Media currently reaches over 200 million monthly users through its diverse portfolio of properties. The company also provides a B2B platform for content distribution, serving nearly 500 publishers.

Peled emphasized the potential to leverage VideoVerse’s platform to create more content and subsequently monetize it effectively.

Future Expansion Plans

Minute Media intends to target U.S.-based sports leagues with the newly acquired technology, encouraging adoption of the highlight-generating platform.

The company recognizes a growing demand for alternative content formats, particularly among mobile users, and believes AI is key to meeting this demand.

Peled indicated that while Minute Media is not currently seeking funding, it may explore additional funding rounds in the coming quarters to support further acquisitions.