Sony Pictures Entertainment  has acquired Grouper, the fast growing user-generated video site on the Internet.

Grouper.com, which is the second largest independent video community, enables its members to watch, share and create video on the Web. Under the terms of the $65 million deal, the Sausalito-based company will retain its current management, working closely with a team at Sony Pictures.

“Consumers are spending more and more time on sites like Grouper, and as one of the world’s largest creators of entertainment, we want to be where the audiences are,” said Lynton. “This acquisition demonstrates the breadth of involvement of Sony Corporation in the field of digital online entertainment. Many people in the Grouper community use Sony cameras to create videos and Sony VAIO computers and mobile devices to store and view them. It makes sense to complete the circle by having Grouper be a part of Sony Pictures Entertainment, which itself creates so much content for people around the world.”

“When you pair Grouper’s innovative video sharing platform on the web and the desktop with Sony’s connected devices and copyrighted media you create a dynamic and exciting environment for consumers,” said Grouper CEO and co founder Josh Felser. “We have an opportunity, as part of the Sony family, to bring together user-generated and copyrighted content across platforms and devices for the first time.”

Lynton said the acquisition of Grouper is a strategic initiative in the field of digital entertainment and consistent with Sony Pictures’ vision of making entertainment accessible to consumers whenever, wherever and however they want. No immediate changes are planned for the site. Over time, Lynton said there is potential for development of ad-supported and premium content businesses. “Grouper gives us a strong platform for growth,” Lynton said.

In addition, he noted that there is value in connecting an enormous amount of imaginative content with a studio that is always interested in finding new ideas and talent for the movies, television shows and games it creates for audiences around the world. “A site like Grouper allows people to showcase their creativity to a vast audience,” Lynton said. “It’s like a virtual, global audition, and a great source of entertainment,” Lynton said.