On 29th January 2007 ROO, an online video networks, announced that they will receive funding of approximately $12 million from News Corporation.

“We are excited to be working with News Corp. to further harness the enormous opportunity of online video across its global network of prestigious media brands. We are further encouraged by News Corp’s proven track record of identifying and partnering with online leaders early in their growth,” said Robert Petty, CEO and Chairman of ROO.

News Corporation is an online video technology provider that already powers the video behind FoxNews.com and other News Corporation sites.

The word spread quickly about ROO procuring an investment of $12 million from News Corporation. However, this news did not amuse Fox Interactive. Fox Interactive is a News Corporation subsidiary. Unlike other News Corporation investments, Fox Interactive was not involved in the ROO deal. Fox Interactive is better known as the Internet arm of News Corporation and has been involved in investments in startups such as SimplyHired.

The insiders have revealed that Fox Interactive was not even aware of the deal being finalized. The Fox Interactive executives only came to know about the deal from other mediums. Fox Interactive executives were definitely baffled over News Corporation’s decision to invest in ROO. To add to the dismay of Fox Interactive is the fact that they were having interactions with ROO competitor Brightcove regarding financial considerations. Brightcove recently raised $59.5 million in a round of financing. Fox Interactive was rumored to be considering the acquisition of Brightcove just anterior to the closing of that financing, for about $250 – $300 million.

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