CBS/ WallStrip Deal Confirmed

wallstrip.jpgInvestors in WallStrip publicly confirmed Monday that the video blog has been acquired by CBS. The story was first broken by Jossip May 13 and we confirmed the deal the same day with a purchase price of $5 million.

As previously reported the buy was focused on acquiring the talents of WallStrip host Lindsay Campbell.

The purchase price has not been publicly confirmed; however the investor notes that $600,000 has been invested in the site to date.

No matter what the price, it will be interesting to see if CBS explains the deal. WallStrip launched with mixed reviews and although WallStrip has an audience, it is far from a RocketBoom (at its peak) or a Dawn and Drew Show in terms of penetration and fan base. From my previous discussions with my source close to the deal, WallStrip has close to no revenue; indeed he claimed that WallStrip has no revenue at all. The cost of CBS or other media outlets establishing a rival video blog to WallStrip would be relatively low and CBS now faces that real threat, the purchase of WallStrip bound to create new startups targeting the investor focused video podcasting market.