AOL purchases StudioNow

AOL has officially bought StudioNow for $36.5 million in cash and stock as the company looks to find a way to overcome its recent financial struggles.

StudioNow is an online platform for creating and distributing videos and AOL sees massive potential in taking advantage of online video ads. In 2008 ads linked to online videos brought in over $700 million and this figure is expected to reach a stunning $5.2 billion in 2014.  The purchase will see StudioNow integrated into AOL’s Seed which manages AOL’s close to 80 websites.