AOL Inc. revealed on Monday that it has acquired Nashville, Tenn.-based StudioNow, an online platform for video development and distribution, in a deal worth $36.5 million in cash and stock. However, some payment will be fulfilled over multiple years.

The acquisition will empower it with a fully developed video creation platform into its newly launched content-management system, Seed. com.

However, StudioNow will also continue to develop its existing business as a provider of online video creation, management, storage and syndication services to commercial companies.

StudioNow operates with a network of more than 3,000 freelance filmmakers, editors, animators, voice talent and writers/producers, and was tagged as the AlwaysOn Global 250 Top Private Companies List, which heartedly welcomes private, emerging technology companies that trigger new business opportunities in developed markets.

The three-year-old company assists various companies to develop, store, and manage content and distribute it online at an affordable price.

"The successful combination of a talented team, innovative technology, seasoned/professional video creators and strong client service has rapidly established StudioNow as a leader in online video creation and syndication", AOL CEO and chairman Tim Armstrong claimed.