Leading mobile operator Vodacom invests in Zoopy
Zoopy, the South African based video sharing and social media web site has just announced on their blog that Vodacom have invested and taken up a 40% stake in the company. Zoopy allows users to share content such as blogs, video and podcasts. Zoopy just recently passed their 10,000th upload and announced a partnership in which they host videos for the mail & guardian‘s newly revamped web site. This is a bold move for Vodacom into the multimedia market.
From the official press release:
“According to Tlhabeli C Ralebitso, Managing Director, Vodacom Ventures, the investment is an important move at just the right time for both parties. ‘Zoopy.com has established itself as a key role-player in the online social media arena and has a growing community that will now be able to grow bigger, better and faster. Vodacom puts great value in what has been achieved online thus far, and we look forward to combining mobile and internet strengths to create an even more valuable destination for all Zoopy.com users.’
CEO of Zoopy.com, Jason Elk, is pleased at having found the ‘perfect partner’. “At the beginning of this year we realised that we needed investment to roll out our strategy to its full potential. But from the start we were quite specific about the partner we were looking for.”
I think this form of investment is more useful then complete buyouts, and much better strategy then to launch competing products. This will only serve to encourage further innovation. Congratulations to the Zoopy team.