Minute Media Acquires VideoVerse to Boost AI-Powered Sports Content Creation
Minute Media, a sports media company backed by BlackRock and Goldman Sachs, announced on Monday the acquisition of VideoVerse, an Indian artificial intelligence startup that automates the extraction of sports highlights and content generation from video footage. VideoVerse counts prominent clients such as the Indian Premier League (IPL), Women’s Premier League Cricket, FIFA+, and broadcasters including Nippon TV and Cubber TV.
VideoVerse’s Evolution and Market Position
Founded in Mumbai in 2016 by Vinayak Shrivastav, VideoVerse initially developed various AI tools, including those for detecting smoking and drinking scenes to assist India’s censor board and for object identification in e-commerce videos. However, the company pivoted to focus exclusively on video editing and detection solutions tailored for sports broadcasters. Early partnerships included Hotstar (now owned by Jio), which sought technology to identify action points in cricket broadcasts.
Operating on a software-as-a-service (SaaS) model, VideoVerse charges clients based on the volume of footage processed. The company has scaled to $65 million in annual revenue, maintaining an EBITDA margin between 35% and 40%. Its chief strategy officer, Prateek Sharma, highlighted recent advancements in AI capabilities that enable broadcasters to automate content creation, such as compiling highlight reels for specific players or events and integrating AI-powered translation to reach international audiences.
Strategic Rationale and Future Plans
Minute Media, which owns well-known properties including Sports Illustrated, The Players’ Tribune, and 90 Minutes, has grown largely through strategic acquisitions. CEO Asaf Peled described the VideoVerse acquisition as the company’s largest in terms of both size and valuation, reportedly in the $200 million to $250 million range—aligned with VideoVerse’s 2023 valuation.
The acquisition aims to combine VideoVerse’s AI-driven content creation tools with Minute Media’s extensive publisher network, which reaches over 200 million monthly users and supports nearly 500 publishers via its B2B content distribution platform. This integration is expected to enhance content generation efficiency and unlock additional advertising revenue opportunities.
Peled also indicated plans to expand the adoption of VideoVerse’s highlight generation technology among U.S.-based sports leagues, responding to evolving consumer preferences for diverse, mobile-friendly sports content. While Minute Media is not currently fundraising, it may pursue additional capital for future acquisitions.
Industry Context
The acquisition reflects broader trends in sports media where AI technologies are increasingly leveraged to meet fan demand for personalized and rapid content delivery. VideoVerse’s proprietary AI model, combined with third-party algorithms, enables automated identification of key moments in sports footage, positioning the company at the forefront of this transformation.
FinOracleAI — Market View
The acquisition of VideoVerse by Minute Media is expected to have a positive short-term impact on the sports media market. By integrating advanced AI capabilities for automated highlight generation with Minute Media’s expansive distribution network, the company is well positioned to capitalize on growing demand for digital and mobile sports content. Key risks include successful integration of technology and client adoption, particularly among U.S. sports leagues. Market participants should monitor Minute Media’s ability to scale VideoVerse’s technology and potential future fundraising activities to support further acquisitions.
Impact: positive
