The rumours were correct: online-video startup Vessel is being acquired by telco Verizon. However, the company founded by former Hulu boss Jason Kilar will be shutting its app down as part of the deal.

“The telecom giant is acquiring Vessel’s product and technology, but plans to shut down the Vessel service,” reported Recode yesterday, adding that Vessel’s CTO Richard Tom will now be taking a similar role for Verizon’s digital entertainment division, including video service Go90.

Terms for the deal have not been disclosed.

Vessel launched in early 2015 as an app for watching shortform videos a few days before they were published on YouTube and other services, charging users $2.99 a month for access.

The company struck direct deals with Warner Music and Universal Music, but its service never quite seemed to take off with consumers. Kilar’s next move – he’s not expected to stick around long at Verizon – will be interesting to watch.

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