MTV Networks, a unit of Viacom Inc., announced it has acquired IFILM for $49 million.

IFILM is a distributor of online video content and reaches over 10 million users per month. In June 2005, MTV bought online youth community Neopets, which like the acquisition of IFLM, helps to increase MTV's online presence.

IFILM will continue to be run by CEO Blair Harrison.

"We are thrilled about the acquisition of IFILM. This move is at the heart of MTV Networks multi-platform strategy and meshes with our tradition of cultivating independent and creative brands. We're combining the top brands in all digital media with our global reach and programming expertise to speak to consumers everywhere they live their lives," says Judy McGrath, CEO, MTV Networks.

IFILM will remain based in Hollywood.

"With IFILM's strong business profile and growing traffic, we see significant opportunities for us to increase our online advertising revenue," adds McGrath.