Adconion buys Joost

Struggling Web video firm launched in 2007

Adconion Media Group, which operates a large global online ad network, has acquired a set of technology assets from Joost -- the flagging Web video company that was once considered a serious challenger to YouTube and Hulu.

Launched in 2007 by Skype and Kazaa founders Niklas Zennstrom and Janus Friis, Joost debuted to much fanfare, along with the support of content providers like CBS and over 30 top advertisers -- including Coca-Cola, HP, Intel and Nike. But the property never caught on in a big way among consumers in the U.S. Earlier this year company CEO Mike Volpi departed, and Joost shifted its business model to become a white label video services provider.

Adconion, which boasts of a network that reaches over 132 million unique visitors in the U.S. plans to keep operating as a place to showcase video content. But primarily the company plans to utilize Joost's technology to bolster its own online video ad business.

"Video is a top priority for our company, and through the acquisition of the Joost assets we will be able to provide advertisers, content owners and website publishers with an end-to-end global video platform and cross-channel video and display ad-serving solution," said Adconion CEO Tyler Moebius in a statement.