AOL is reportedly buying online video network 5min.  The estimates put the acquisition between $50 million and $65 million, which may not be the returns the video site would want after $13 million in funding over the past three years, but the price seems right for AOL, which is still in the process of re-branding and rebuilding its web portal.

The article goes on to speculate around AOL’s plans for 5min, with goals to distribute video content to publishers.  The content on 5min is a mix of user-generated and professionally-produced videos, with a library of 200,000 clips that generate 110 million views monthly, via its 800 partner sites.  From All Things D,

“5Min has raised some $13 million in three years, and last spring CEO Ran Harnevo told me he was being offered the chance to raise more money at very attractive valuations. The deal is at least part of AOL’s secret video strategy–the one that CEO Tim Armstrong acknowledged, but wouldn’t disclose, earlier this month.”

It would be an interesting move for AOL to make, essentially purchasing a video database to redistribute and monetize.  Online videos are still gaining in consumer consumption, with an array of advertising options still being developed for the medium.  Considering ad network interests in the mobile sector, and other startups such as LiveMatrix beginning to index live events into a searchable guide, it’s clear that an industry is finally forming around sustained revenue generation through web-based video.

AOL has possibly already taken the first steps towards monetizing a freshly acquired video network. The company also announced a new ad network, called Project Devil. “Right now this is the first step, you can expect us to innovate for the next decade in brand advertising,” said AOL Chief Executive Tim Armstrong.