VZ Verizon Communications Inc

By Josh Beckerman 

Verizon Communications Inc. will buy the technology of web-video startup Vessel and will hire most of Vessel's employees.

According to a Vessel blog post, the service will shut down on Monday.

Vessel, which was led by former Hulu Chief Executive Jason Kilar, launched its $2.99-per-month service in March 2015. The company sought deals with content creators to post videos days before other destinations such as YouTube.

Vessel's investors included Institutional Venture Partners, Greylock Partners, Benchmark and Bezos Expeditions. As of April 2015, the company had a raised a total of $134.5 million.

The terms of the purchase weren't disclosed. The deal is expected to close this month. Verizon praised the Vessel's team strengths in areas such as content discovery and user experience management.

Verizon said it is "committed to providing content from the industry's top creators on a mobile-first distribution platform both on and off the Verizon network."

According to the blog post, Vessel Chief Technology Officer Richard Tom "will be leading the charge on all things technology, product and team going forward," while Mr. Kilar's focus "will be to ensure a smooth transition through the end of this year."

Verizon announced in July that it would buy Yahoo Inc. for $4.8 billion. Verizon Executive Vice President Marni Walden said Wednesday that the deal "absolutely" still makes sense, despite a massive Yahoo data breach announced last month.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

October 26, 2016 19:40 ET (23:40 GMT)

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