Otter Media, a joint venture between US telco AT&T and The Chernin Group, has acquired a majority stake in online media company Fullscreen.
The companies did not disclose the stake size or the price tag but multiple reports suggest that the deal values…
Otter Media, a joint venture between US telco AT&T and The Chernin Group, has acquired a majority stake in online media company Fullscreen.
The companies did not disclose the stake size or the price tag but multiple reports suggest that the deal values Fullscreen at between US$200m and US$300m.
Under the agreement, Fullscreen CEO and founder George Strompolos will remain in his position and retain a stake in the company, AT&T said in a statement.
British advertising group WPP, which invested in Fullscreen in a 2013 funding round along with Chernin and Comcast Ventures, will continue to be a strategic shareholder in the company.
The transaction is due to close next month, subject to regulatory approval.
Commenting on the deal, Aaron Slator, president for content and development at AT&T, said: “We are excited to have Fullscreen as an integral part of Otter Media, as this supports our focus on youth-based content.”
Founded in January 2011, Fullscreen produces videos which are distributed via YouTube. It claims to generate over 4 billion monthly video views from over 150 million subscribers.
Otter Media was set up by Chernin, whose founder is former News Corp president Peter Chernin, and AT&T in April 2014 to invest in over-the-top (OTT) video services.
In 2013, AT&T had already teamed up with Chernin in a failed attempt to take control of video streaming company Hulu.
Besides mobile, fixed-line and broadband, the telco giant also offers IPTV services and is in the process of acquiring satellite broadcaster DirecTV for US$48.5bn.