CNN has acquired a video- sharing app ‘Beme’ co-founded by YouTuber Casey Neistat for an undisclosed amount. With this acquisition, Beme will function as a standalone unit at CNN, powering a new company to be introduced in mid-2017. All the 11 of Beme’s employees will join CNN and Neistat will lead the Beme team as executive producer of the new company and will work its editorial vision.
Beme’s Co-Founder and CTO, Matt Hackett, said that Beme the as a single product has failed, but as a vision for the kind of technology and media that must be built is just getting started. “Like us, CNN believes that technology should be used to share necessary information, to promote human understanding, not to simply manipulate attention. Truth matters. Hearing voices and seeing perspectives far from your own matters. These principles, on which Beme was built, will form the core of our mission as a part of CNN,” he said.
“By joining forces with CNN, we’re able to give our mission more than just one, startup-budgeted shot. We are going to hunker down and create something new. To do that with the full focus it deserves, we have to say goodbye to Beme.”
CNN acquired it with the motive of investing in the team (hiring producers, developers and content creators) and the product in order to create a new brand focused on the millennial audience. According to the company after this deal, Neistat will retain control of his personal social media channels and accounts, such as his 5.8-million subscriber strong YouTube channel.
“While the acquisition was not a TV talent deal, the company is exploring ways for Neistat to connect with new audiences,” CNN said.
Till date, Beme had raised $2 million from investors including Lightspeed Venture Partners and Vayner/RSE, a partnership of Gary Vaynerchuk, VaynerMedia and RSE Ventures.