Minute Media lays off 12% of workforce, reverses course on VideoVerse after $200 million acquisition
The unicorn says restructuring reflects push for efficiency and long-term growth amid changes in the media market and rising AI-driven disruption, alongside termination of VideoVerse integration.
Minute Media has laid off about 12% of its employees. The company employs approximately 500 people in Israel and around the world, meaning the reduction amounts to roughly 60 employees.
The company said it has recently implemented a series of organizational changes as part of its ongoing effort to pursue more efficient and focused long-term growth. “As part of this process, about 12% of the company’s global workforce was laid off, including employees in Israel. The move comes alongside continued growth at the company, as it adapts its operations to changes in the media market and the rise of artificial intelligence.”
“In addition, the company decided to terminate its contract with VideoVerse, which it recently acquired and is no longer part of its ongoing operations. As a result, further adjustments were made to the organizational structure. These are not easy decisions, but necessary as part of the continued building of Minute Media as a global leader in technology and sports content,” the company said.
Minute Media acquired the Indian company VideoVerse in a cash-and-stock transaction valued at approximately $200 million last September. The company did not explain the reasons for terminating the agreement with VideoVerse.
The Indian-American company, which employs approximately 300 people, has developed Magnifi, a SaaS platform that enables rights and content owners to automatically identify highlights in sports, create real-time summaries, and distribute short, engaging video content efficiently and quickly.
Calcalist has learned that Minute Media entered into the deal after concluding that VideoVerse had an attractive product, a promising business model, and a customer base that included some of the world’s leading sports leagues.
Even after the acquisition, VideoVerse remained a separate legal entity and was never fully integrated into Minute Media’s operations. After discovering, among other things, significant gaps in VideoVerse’s presentations, Minute Media decided to terminate its agreement with the company.
To complete the acquisition, Minute Media raised tens of millions of dollars from its investors at a valuation of $1.4 billion. To date, Minute Media has raised around $300 million and employs over 500 people.
That acquisition was set to be the company’s largest in recent years. In March 2024, Minute Media acquired the franchise to distribute Sports Illustrated content. A few months earlier, the company acquired STN Video, gaining the rights to distribute content from all major U.S. leagues and their subsidiaries, including the NBA, NFL, MLB, NASCAR, and Formula 1.
