There are hundreds of video sites on the Web – all trying to be the next YouTube. But, so far, it's been pretty tough.There is hope though. This week, HowStuffWorks snagged $75 million.
True, this site has been around since the late 1990s and is kind of like a Wikipedia.org for the do-it-yourself crowd.
Now, with its slug of cash, HowStuffWorks is going to move aggressively into the video space. And it makes a lot of sense. After all, the instructional video market is large and well-established.
In fact, HowStuffWorks has already been building its film library, with content from Sony Corp. (NYSE: SNE), GE (NYSE: GE), and even NASA. By having such content, it will certainly make it easier to attract sponsors – who can better target their ads.
There are also big-time e-commerce opportunities. For example, Dell Inc. (NASDAQ: DELL) can post videos on its latest PCs and gadgets.
To me, it seems like a killer model. Ironically, it may be an approach that YouTube may want to emulate. Or its parent -- Google -- may just buy the company.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
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