Revver in Debt; for Sale
Revver.com, the video sharing website, is up for sale. Apparently, the idea of sharing ad revenue to video producers isn’t a lucrative business and Revver is now $1 million in the red.
Reports from News.com says Revver is selling itself for a cheap $300,000 to $500,000. Potential buyers will have to shoulder the debts too.
Revver has received about $12.7 million in venture funding in 2 rounds. It has made a name for itself within the crowded video-sharing field by offering to share ad revenue with videographers who post popular clips on the site. Launched in 2006, Revver took the cue from popular video sharing site YouTube which later Google bought.
The idea of inserting video ads at the end of the clips was supposed to solve the business model. With this development, it looks like the idea didn’t fly.
In October last year, YouTube followed suit and introduced AdSense for Videos but there hasn’t been any good news from that end as well.
Revver has already paid about $1 million to their publishers in July 2007 but it looks like recent ones won’t get a check from them anymore. People only used Revver specifically because of the revenue-sharing scheme. Now, it looks like they’ll flock back to Youtube.