Comcast NBCUniversal is acquiring Craftsy for an undisclosed sum. This was confirmed by the chief executive officer of the firm that is famous for how-to videos on various crafts, John Levisay, in a statement to employees.
“[NBCUniversal] will provide us tremendous resources and a massive distribution platform to further pursue our vision of becoming an iconic brand in the maker space via ‘edutainment,’ lifestyle learning and supplies,” Levisay said.
Staying in Denver
Levisay also assured the employees who number more than 190 that the company would not be relocating from its present offices in Denver. Members were also assured that there will be little change.
Started in 2011, Craftsy has so far managed to raise $103 million in funding. Recently it added to its online offerings when it begun selling yarns and fabrics on its website. Following the deal, Craftsy will benefit from having access to the rich trove of video resources that Comcast NBCUniversal owns.
Craftsy could also benefit from an enhanced list of experts and therefore unlock synergies and opportunities for developing new content. The how-to video startup makes its videos at its production studio which will now become a part of the facilities that NBCU Cable owns.
Comcast is understood to be planning on building the brand awareness of Craftsy with a view to grabbing a bigger share of the $30 to $40 billion crafts retail market. Last Fall, Levisay disclosed that Craftsy’s ecommerce business then brought in around 40% of the total revenues and this was about $60 million per year.
At present Craftsy’s audience is approximately 12 million which mainly visits the website for workshop videos that are led by experts as well as its online store. Every week the number of active visitors is approximately 2 million.
The Comcast executive who will be responsible for Crafty will be Dave Howe, the president of strategy at the Cable Entertainment Group of NBCUniversal. Levisay, who together with other Craftsy co-founders have signed to staying with their tech startup for at least four years, will be reporting to Howe.
Comcast NBCUniversal has been enhancing its investments in digital media recently as the growing wave of cord-cutting continues as cable television faces a growing threat from online streaming. Recently the media and cable giant invested in Vox Media and Buzzfeed. It also invested approximately $500 million in the Initial Public Offer of Snap Inc, the parent company of the disappearing message social media platform, SnapChat.