Verizon acquires Vessel to boost its online video ambitions

In an attempt to bring more content publishers and boost its video ambitions, Verizon is acquiring Vessel, a mobile video service provider to use its technology, product, and team to strengthen the telecommunication giant’s online video strategy.

Though the financial details of the deal are yet to be disclosed, Vessel is shutting down on October 31; so we can expect the transaction to be closed within 30 days.

According to TechCrunch, with this acquisition "Verizon plans to merge some of Vessel’s social features into existing Verizon products and to explore subscription business models for its video content."

Founded by Jason Kilar, Vessel announced the news in a blog post saying, "Verizon shares our belief that internet protocol will inevitably become the dominant way consumers access great video experiences. The Verizon team has backed this conviction with material investments and a focus on what makes them unique in a competitive marketplace."

The company has also confirmed that they will be providing complimentary access for the month of October, to all its subscribers.

Kilar will remain with Vessel until the end of the year to ensure a smooth transition and his co-founder and chief technology officer Richard Tom will oversee the integration.

Major television networks signed agreements with Vessel to have their content featured including Discovery Digital Networks, the Science Channel, A&E, NBC, and even the National Basketball Association (NBA). Also, Vessel had enlisted YouTube stars and other video creators, offering early access to their videos for $2.99 a month.

Vessel has so far raised more than $130 million from investors, including Benchmark, Greylock, Bezos Expeditions and Institutional Venture Partners.