Report: RuTube to be Sold for $15M

RuTube, the Russian clone of YouTube, is close to inking a deal to be sold to media giant Gazprom-Media for $15 million, according to Kommersant (via the Quintura blog and with thanks to Google Translate).

RuTube, run by a company called ZAO Rutyub, reportedly has a monthly audience of 5.5 million. Embedded above it the current lead video on the site. Though I count more than a few Russians among my ancestors, I have no clue what it’s about.

According to Kommersant’s sources, the deal is nearly done, and includes a pledge to invest several million dollars in the site. But there is reportedly concern that if RuTube is bought by Gazprom, other Russian media companies will stop uploading their content to the site. RuTube’s competitors include Yandex, Mail.ru and YouTube.

Kommersant’s take is that the deal is overvalued. RuTube and Gazprom were reported to have been in talks at a valuation of $20 million in January. Kommersant says venture fund ABRT offered $5 million for RuTube in the summer of 2007.