Furthering its stated goal to bring “content to consumers on all the platforms they prefer,” The Walt Disney Company has agreed to acquire Maker Studios, the leading network of online video content on YouTube.
Maker Studios shareholders will receive total consideration of $500 million, and a performance-linked earn-out of up to $450 million if the strong performance targets are met. The transaction, which is subject to regulatory clearances, is expected to close in Disney’s third fiscal quarter.
With more than 55,000 channels, 380 million subscribers and 5.5 billion views per month on YouTube, Maker has established itself as a top online video network for Millennials.
By acquiring Maker Studios, Disney will gain advanced technology and business intelligence capability regarding consumers’ discovery and interaction with short-form online videos, including Disney content.
“Short-form online video is growing at an astonishing pace and with Maker Studios, Disney will now be at the center of this dynamic industry with an unmatched combination of advanced technology and programming expertise and capabilities,” says Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company.