YouTube multichannel network Fullscreen will sell a controlling stake in the company to AT&T and the Chernin Group’s joint web video venture, Otter Media. The Chernin group, Comcast and WPP made a $30 million investment in a Series A round in Fullscreen over a year ago. This new deal will likely value Fullscreen at around $200-$300 million, according to ReCode, which first reported the deal.
Fullscreen is one of the most popular YouTube channels at the moment. The Culver City, Calif.,-based company says it gets over 4 billion monthly views. According to Social Blade, Fullscreen is one of YouTube’s top multi-channel networks with more than 28 million subscribers generating over 5 billion views a month. Just to put that into perspective, Maker Studios gets over 5.5 billion views a month. Disney purchased Maker Studios for $500 million this last March.
There was an earlier rumor that Yahoo was also interested in buying Fullscreen. Yahoo CEO Marissa Mayer has hopes of taking on video giant YouTube by poaching video stars and creating a more closed network specific to popular personalities. AT&T president of content says the purchase of a controlling stake in Fullscreen, “supports our focus on youth-based content.”
The Chernin Group nabbed a majority stake in Japanese anime site Crunchyroll late last year. It has since been added to Otter Media. This purchase of Fullscreen will leave a pretty sparse offering in independent media channels.
The deal is expected to close within the next month, “subject to regulatory approval.” Fullscreen founder George Strompolos will stay on as CEO and maintain an ownership in the company.
Fullscreen, founded in January 2011, works with more than 50,000 content creators who engage 450 million subscribers.
Comment