By Tess Stynes
Otter Media, a joint venture between AT&T Inc. and media
company Chernin Group, agreed to acquire a majority stake in
YouTube video producer Fullscreen Inc.
Financial details of the deal, expected to close within the next
month, weren't provided.
The Wall Street Journal in July had reported that Otter Media
was in advanced talks with Fullscreen and that a potential deal was
likely to value Fullscreen at around $250 million.
The deal marks the latest in a series of acquisitions of
so-called multichannel networks, startups which recruit popular
YouTube stars and help them sell ads next to their online clips in
return for a cut of ad revenues.
"We are excited to have Fullscreen as an integral part of Otter
Media, as thissupports our focus on youth-based content," said
Aaron Slator, president, Content Development, AT&T.
Under the deal, Fullscreen Founder and Chief Executive George
Strompolos will remain CEO and maintain an ownership stake in the
company. Fullscreen's management team will continue in their
roles.
Chernin Group, a media company formed by high-powered executive
Peter Chernin, earlier this year joined with AT&T to invest
more than $500 million in a new venture fund geared toward online
video programming.
Fullscreen, founded in 2011, raised $30 million from investors
including Chernin, Comcast Ventures and WPP Digital. WPP will
continue as a strategic shareholder in Fullscreen.
Write to Tess Stynes at tess.stynes@wsj.com
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