Jersey City-based Kitara Media announced today it has acquired Health Guru Media Inc., the Internet's largest online health video site according to comScore.
According to the announcement, securityholders of Health Guru Media Inc., operator of healthguru.com, a health video site with nearly 500 million monthly video advertising views, will receive an aggregate of 18 million shares of Kitara Media stock.
Robert Regular will remain chief executive of Kitara Media. Joshua Silberstein, chief executive of Health Guru Media, will assume the role of president at Kitara. The acquisition establishes Kitara Media as a company with an estimated $50 million in annual revenues, the company said in a statement
Kitara announced in a press release Wednesday as part of the transaction it raised $2 million from qualified investors in a private offering priced at 50 cents. The money raised will provide working capital to rapidly expand the merged company. As of the closing, Kitara Media has approximately 83 million shares outstanding and approximately 9 million stock options outstanding.