The Mystery Sale of Metacafe

    December 7, 2006

Rumors are swirling that Metacafe, the third largest video-sharing site is for sale. The buyer of the site remains a mystery. Conventional wisdom is that it could be the freshly reorganized Yahoo who will purchase the site for a reported $200 million.

No official announcements have been made. Ynet has reported that the site will be sold but did not have details of who the secretive buyer could be.

Eyal Herzog, Arik Czerniak, and Ofer Adler founded the Tel Aviv-based company in July 2003. Since the Metacafe launch the company has earned close to $20 million. Most of their earning came from venture capital groups Benchmark Capital and Accel Partners.

Metacafe has a global audience of 17 million unique visitors viewing over 400 million videos a month according to comScore Media Metrix. The company is a competitor to YouTube and Google video.

Responses on the Metacafe sale to Yahoo have been mixed. On Techcrunch a poster with the name of Beatbox said,” Metacafe actually has a cooler interface than Youtube. Whether they are tracing Google or not, I think it will do well for Yahoo, especially if they can grab it for $200 million. They are still the most-visited homepage and I’m sure they would plaster it front and center.”

Another poster had a different view. “Let’s hope Yahoo doesn’t snap it up; that would suggest that all of their peanut butter memos and internal shuffling is just please-the-shareholder window dressing – not actually meaningful change.”

When an announcement will be made is not known. Until then there will be no shortage of speculation and rumor.

Mike is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.