Criterion has taken a controlling stake in SeeSaw in a deal believed to be worth around £10m. The private equity firm brought together a group of investors, including former Disney senior executive Dan Adler and ex-Channel 4 chief executive Michael Jackson, to clinch the acquisition.
The company will take a majority stake in SeeSaw and Jackson, who also oversees social network Bebo for Criterion, will become the online TV website's new chairman.
Arqiva, which announced plans in May to close SeeSaw after failing in its 16-month search to find a buyer, will retain a 25% stake in the company.
The transmission operator created SeeSaw after spending £8m to acquire the IPTV technology developed for Project Kangaroo, the BBC Worldwide, ITV and Channel 4 joint venture that was blocked by the Competition Commission.
Arqiva invested heavily in acquiring more than 3,000 hours of on-demand programming for SeeSaw, with the site attracting around 900,000 unique visitors a month.
Speaking about the acquisition, Jackson said: "The TV industries in the UK and abroad will continue to be reshaped in ways no-one can quite predict. However, it is clear that web-delivered programming will play a vital role in that transformation.
"The technology behind SeeSaw is world class and the group behind the bid has a great mix of entrepreneurial and industry experience."
John Cresswell, the former ITV executive who now leads Arqiva, added: "SeeSaw, and Project Kangaroo before it, is the product of many years of hard work and innovation from some of the best technical and programming minds in the entertainment industry. We are pleased to retain a sizeable stake in SeeSaw and optimistic for its future."
Criterion intends to retain most of SeeSaw's key staff members, who are based in London.