Cable News Company (CNN) has made a move to attract the younger, millennial crowd and achieve its goal of transitioning into a full digital company, instead of just being known as a 24-hour cable news channel. CNN has solidified this goal by acquiring the video-sharing app Beme, owned and developed by Casey Neistat.
The New York Times reported that CNN has officially acquired video-sharing startup Beme, for $ 25 million. Beme is a social media app launched last year by popular YouTube star Casey Neistat.
"Casey has tapped into nearly six million really powerful viewers, most of which do not tune in to CNN," Andrew Morse, global head of CNN Digital, was quoted by the Times. "To build this audience authentically, we believe we need to build something new," the report added.
Thanks @bemeapp never knew I could share what I love with so many! @jackycoyne @CaseyNeistat pic.twitter.com/66CwSK1fo6
— Spencer Petersen (@PenrosePete) November 29, 2016
It seems that the video-sharing app Beme is something that CNN needs to widen its viewership. The acquisition calls for the establishment of a new company that will become an extension of CNN. Neistat, founder of the video-sharing app Beme, and his 11 employees will be given creative license and control to come up with projects and ideas.
CNN's purchase of the video-sharing app Beme is not unusual. Earlier, NBC Universal had invested $200 million in BuzzFeed as well as Vox Media. AMC Network, for its part, bought a minority stake in a digital comedy site started by Will Ferrell and Adam, McKay, called Funny or Die.
The video-sharing app Beme allowed users to shoot and share quick, unedited video clips. It competes with apps such as Snapchat and Instagram. Now that it has been acquired by CNN, it will offer the TV company wider mobile video efforts, says The Wall Street Journal.
After the acquisition, Neistat will have control of his personal social media channels and accounts. This includes his almost 6 million YouTube channel subscribers.
