CULVER CITY, Calif. -- Sony Pictures Entertainment (SPE) has acquired Grouper, the fast growing user-generated video site on the Internet, it was announced today by Michael Lynton, SPE Chairman and Chief Executive Officer.

Grouper.com, which is the second largest independent video community, enables its members to watch, share and create video on the Web. Under the terms of the $65 million deal, the Sausalito-based company will retain its current management, working closely with a team at Sony Pictures.

“Consumers are spending more and more time on sites like Grouper, and as one of the world’s largest creators of entertainment, we want to be where the audiences are,” said Lynton. “This acquisition demonstrates the breadth of involvement of Sony Corporation in the field of digital online entertainment. Many people in the Grouper community use Sony cameras to create videos and Sony VAIO computers and mobile devices to store and view them. It makes sense to complete the circle by having Grouper be a part of Sony Pictures Entertainment, which itself creates so much content for people around the world.”

“When you pair Grouper’s innovative video sharing platform on the web and the desktop with Sony’s connected devices and copyrighted media you create a dynamic and exciting environment for consumers,” said Grouper CEO and co founder Josh Felser. “We have an opportunity, as part of the Sony family, to bring together user-generated and copyrighted content across platforms and devices for the first time.”

Sony Corp. of America

Grouper Networks