(30 January 2007 7:30 pm)

MUMBAI: News Corp is buying a stake in Australian web video firm Roo. Ruper Murdoch’s media conglomerate is initially taking a five per cent stake, which can go up to 10 per cent if certain predetermined revenue targets are achieved.

Roo currently manages online global video content distribution and content syndication across many of News Corp’s properties including The Times of London, and The Australian and has content syndication partnerships with FOX News Channel and Sky News.

“We are excited to be working with News Corporation to further harness the enormous opportunity of online video across its global network of prestigious media brands,” says Roo chairman and CEO Robert Petty.

The deal with News Corp comes less than a week after Roo, currently valued at $75 million, announced the acquisition of MyVideoDaily, a Web destination and software company.

The reported $1.35m acquisition provides Roo with a proven search engine marketing strategy that introduces new users to the company’s portals and desktop applications.