The companies say the deal will allow MyVideoDaily's search marketing assets to be expanded enabling Roo's publishing partners to promote their properties through the portal.
The acquisition will also bring community features - such as user comments and video rating systems - to Roo's portal products and give access to 750,000 computer desktops through MyVideoDaily's video desktop application.
The deal is believed to have included $350,000 in cash payments and a potential allocation of up to 500,000 Roo Group shares depending on the achievement of certain milestones.
Robertson Price, CEO of MyVideoDaily, will also join Roo as senior vice president of product and network management.
Robert Petty, chairman of Roo, said: "Through MyVideoDaily's desktop video applications, we will gain direct access to thousands of consumers through our presence on their PCs.
"The addition of Rob Price, an experienced executive in the online video space, will complement Roo's existing management team as we seek to further build on our comprehensive content library and vast distribution network."
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