Otter Media, the online video joint venture between The Chernin Group and AT&T formed earlier this year, confirmed Monday (September 22) that it has agreed to purchase a majority stake in Fullscreen, the over-the-top multichannel service tailored for young consumers.
Financial terms weren’t disclosed, but the deal is likely to value Fullscreen in the range of $200 million to $300 million, according to Re/code.
Fullscreen, a YouTube network founded in January 2011, said it has more than 50,000 content creators that engage with about 450 million subscribers that collectively generate 4 billion monthly views. As part of the deal, Fullscreen CEO and founder George Strompolos will continue as CEO and retain a “material ownership stake” in Fullscreen, which has more htan 200 employees worldwide. Fullscreen’s management team will all continue in their roles in the company.
AT&T and The Chernin Group committed to invest $500 million in the OTT venture when they announced it in April. Otter Media made its first acquisition in July, shelling out $10 million for Creativebug Inc., a source for online video arts and crafts instruction. Otter Media also has a majority stake in Crunchyroll, an ad-supported video platform for Japanese anime and Korean content.
“Our relationship with George started over three years ago when he launched Fullscreen in our offices. Since then, George and the Fullscreen team have achieved something remarkable – they have built one of the largest online content distribution networks, as well as created a leadership position in youth-oriented video programming,” said Peter Chernin, chairman and CEO of The Chernin Group, in a statement.