The Seattle Times and BusinessofVideo.com, which reported this week thatCiting unnamed sources, BusinessofVideo reports that the buyer is a New York-based desktop video company. That would rule out a couple possible big-name suitors. Comcast, which purchased Seattle video startup thePlatform in June 2006, and Cisco, the networking powerhouse, sunk cash into GridNetworks. It raised a $9.5 million venture round in October 2007, with total funding in the company at the time under $20 million.
NewTeeVee -- also citing unnamed sources -- reports that there won't be much of a return on the capital invested.
Led by former Internap CEO Tony Naughtin, GridNetworks has developed a peer-to-peer system to deliver HD-quality TV and movies at a lower cost than rivals. Competitors include Akamai and Limelight Networks.
The startup was founded by Jeff Payne, a former RealNetworks who told me in 2006 that the cost of delivering a 1.2-gigabyte movie through the system was only 25 to 50 cents. That price point, he said, could change the online video business.
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<frame src="./tiny_templates_c/connect_head.php?wid=72741&cat=Business&url=http://feedproxy.google.com/~r/TechFlash/~3/2WGOPr69HyQ/Reports_GridNetworks__41879952.html&urltitle=Reports: Video distribution startup GridNetworks selling out&description=<p>Has Seattle video distribution startup <a href="http://www.gridnetworks.com/">GridNetworks</a> been sold? That's the word from <a href="http://seattletimes.nwsource.com/html/brierdudley/2008925208_brier26.html?syndication=rss">The Seattle Times</a> and <a href="http://blog.streamingmedia.com/the_business_of_online_vi/2009/03/video-delivery-platform-provider-grid-networks-close-to-being-acquired.html">BusinessofVideo.com</a>, which reported this week that</p><p>Citing unnamed sources, BusinessofVideo reports that the buyer is a New York-based desktop video company. That would rule out a couple possible big-name suitors. Comcast, which purchased Seattle video startup thePlatform in June 2006, and Cisco, the networking powerhouse, sunk cash into GridNetworks. It raised a <a href="http://blog.seattlepi.com/venture/archives/139185.asp">$9.5 million</a> venture round in October 2007, with total funding in the company at the time under $20 million.</p><p>NewTeeVee -- also citing unnamed sources -- <a href="http://newteevee.com/2009/03/25/gridnetworks-close-to-sale-move-networks-looks-for-new-ceo/">reports </a>that there won't be much of a return on the capital invested.</p><p>Led by former Internap CEO Tony Naughtin, GridNetworks has developed a peer-to-peer system to deliver HD-quality TV and movies at a lower cost than rivals. Competitors include Akamai and Limelight Networks.</p><p>The startup was founded by Jeff Payne, a former RealNetworks <a href="http://www.seattlepi.com/business/290672_gridnetworks01.html">who told me in 2006</a> that the cost of delivering a 1.2-gigabyte movie through the system was only 25 to 50 cents. That price point, he said, could change the online video business.</p> <br /> <a href="http://www.techflash.com/Reports_GridNetworks__41879952.html">READ MORE and COMMENT</a><img src="http://feeds2.feedburner.com/~r/TechFlash/~4/2WGOPr69HyQ" height="1" width="1"/>," name="head">
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