AOL LLC Acquires Broadband Video
Advertising Leader Lightningcast,
Inc.
Lightningcast and AOL's Advertising.com Join Forces to Form
Leading Video Advertising Network
Dulles, Virginia - Thursday, May 18, 2006 - AOL LLC today announced
that it has acquired broadband video
advertising innovator
Lightningcast, Inc. of Washington, D.C. Lightningcast is the
industry leader in broadband video and audio ad insertion and
campaign management. The Company pioneered the development of
solutions for delivering
advertising into on-demand, live,
and downloaded video content across the web.
AOL's acquisition agreement with Lightningcast is dated May 5th,
and closed May 17th. Financial terms were not disclosed.
Lightningcast was previously privately held.
Laptop Battery Founded in 1999, Lightningcast and its 34 employees - led by CEO
Tom MacIsaac - will continue its current operations and work on
behalf of clients as a wholly-owned subsidiary of
Advertising.com, which is a
wholly-owned subsidiary of AOL LLC based in Baltimore, Maryland.
Lightningcast will continue to be based in Washington, D.C.
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Thinkpad Lightningcast's technology platform provides flexible solutions
to owners and distributors of broadband video and audio content
including seamless ad insertion, campaign management, and
reporting. At the same time, Lightningcast has developed strong,
established relationships with a diverse base of publishers,
including some of the web's leading online companies and
destinations, who license its technology for use on their own web
sites.
Katz runs the company with 22 paid employees and 300 volunteers who give technical support to new users and are compensated with free memberships (remember those days at AOL ). He rents space in two AT&T data centers, one in Manhattan, another inSecaucus, N.J., with $700, 000 worth of computer equipment, end servers from Dell Computer and five IBM Unix servers. The $2 million annual payroll is his biggest expense.
Microsoft In addition, earlier this year Lightningcast launched the
"InStream" video advertising network, which allows
Lightningcast to expand its role in providing managed insertion of
streaming media advertising and reporting by
becoming a direct seller of streaming media inventory (across its
third party network) to advertisers.
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Laptop Computers Since 2002, AOL has successfully used Lightningcast's platform,
first for audio (AOL Radio) and later for video streaming
advertisements (AOL Video) - partnering on such innovative,
groundbreaking projects as the recently launched broadband network,
"In2TV", from AOL and Warner Bros.
muvee, the pioneer and leader in Instant Personal Video, has announced a deal with Palit Microsystems, Inc.
Laptop Computer AOL LLC will now merge Lightningcast streaming media technology
and advertising network operations
under Advertising.com within AOL's Audience business unit.
Advertising.com's newly launched pre-roll video network and the
InStream network will merge, operating under the InStream name. The
combined network will comprise 300 websites and 175 million monthly
streams. Advertisers will be able to target video campaigns across
the network by behavior, demographic, content channel and more.
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Desktop Computer AOL's acquisition of Lightningcast will support
Advertising.com's continued efforts to provide advertisers with a
centralized resource for their online marketing needs. In addition
to offering web, search and behavioral marketing solutions,
Advertising.com created the first centralized network for the
delivery of automated rich media campaigns, including floating,
auto-expandable and sound-enabled creatives. Both the InStream
network and Advertising.com's rich media network simplify the often
complex planning, buying and execution processes for these more
sophisticated ad formats.
Notebooks "This acquisition will provide a huge infusion of talent,
technology, and publisher relationships for Advertising.com at a
time when streaming video is growing at a blistering pace," said
Mike Kelly, President, AOL Media Networks, which oversees
Advertising.com. "When we looked at the video ad market we
identified and pursued the clear leader - Lightningcast. This
acquisition will allow AOL and Advertising.com to continue to
create cutting-edge ad solutions, own and further develop the
leading strategic advertising platform, and set the course for the
future of online video. The acquisition of Lightningcast is also an
important component in furthering AOL's established leadership as
the premier destination for video on the web."
Lenovo "This acquisition brings together true pioneers in online
advertising," says Tom Maclsaac, president and CEO of
Lightningcast. "Advertising.com has always been ahead of the pack
in interactive marketing, and Lightningcast has been the leading
innovator in broadband video advertising. Now, we will be able to
fully leverage Advertising.com's powerful sales team - and their
expansive publisher base - to propel InStream forward as the
dominant force in the streaming video advertising arena."
Hard Drive Lightningcast's existing InStream sales force will continue to
focus exclusively on video, and work closely with the
Advertising.com sales team to maximize the growing opportunities in
video advertising. Lightningcast will also continue to build and
expand its third-party video ad-serving business, which serves many
of the leading online video publishers.
Travelstar Other recent corporate acquisitions by AOL include Truveo, Inc.
in December 2005, Music Now, LLC in November 2005,
Weblogs, Inc. in October 2005, and Xdrive, Inc. and Wildseed, Ltd.
in August 2005. AOL acquired Advertising.com in June 2004.
Gateway For more information on Lightningcast, please visit
www.lightningcast.com.
About Advertising.com
Advertising.com conducts strategic direct-response and brand
marketing campaigns that guarantee bottom-line results for our
clients. From web ads to search listings, we offer diverse tactical
tools, innovative thinking and the most expansive reach in the
industry. Advertising.com is a wholly owned subsidiary of AOL LLC.
For more information, visit www.advertising.com or call
410.244.1370.
About Lightningcast
Lightningcast is a leading provider of technology that enables
broadband audio and video marketing, branding and advertising.
Lightningcast's core ad management system helps customers manage
and deliver targeted, audited audio and video advertising into
audio and video content. Lightningcast also operates InStream, the
first Internet ad network dedicated exclusively to broadband video
advertising.
Laptop Parts About AOL LLC
AOL LLC and its subsidiaries operate a leading network of Web
brands and the largest Internet access subscription service in the
United
States. Web brands include the
AOL.com website, AIM, MapQuest and Netscape. AOL offers a range
of digital services in the areas of education, safety and
security, communications and
music. The company also has
operations in Europe and Canada. AOL, which is based in Dulles,
Va., is a majority-owned subsidiary of Time Warner Inc. (NYSE:
TWX)
Software Source: AOL LLC
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