Parmy Olson, 08.23.06, 12:56 PM ET
Sony Pictures Entertainment has leapt into the new media ring by picking up Grouper Networks, a video sharing Web site.
The $65 million acquisition of the Sausalito-Calif.-based company opens up the possibility for Sony (nyse: SNE - news - people ) to market its movies, music and TV shows on Grouper.com, which is similar in nature to YouTube.
"We want to be where the audiences are," said Sony Pictures' chief executive Michael Lynton in a statement. The acquisition, he said, showed Sony's breadth of involvement in the field of digital online entertainment.
The Japanese media giant has already ventured into the Web by selling TV shows and movies online, and distributing a video editing software package called Screenblast. But Grouper represents the first time Sony is investing in a business that facilitates content exclusively for the Web. Sony will eventually monetize Grouper.com by introducing ads and premium content.
