Disney to buy YouTube network Maker Studios for $640m
Published on Mar 25, 2014 6:55 AM
LOS ANGELES (REUTERS) - The Walt Disney Co has agreed to buy Maker Studios, one of YouTube's largest networks, for US$500 million (S$640 million), a deal that makes Disney a major online video distributor and should help draw more teens into the Disney entertainment empire.
The price tag could rise to US$950 million if Maker hits certain performance milestones, Disney said, confirming what a source told Reuters earlier on Monday.
Maker, founded in 2009, is one of the largest video production networks on Google's YouTube. Its producers target the younger millennial generation, known for its high appetite for online videos.
"This gives a presence online to reach the millennial group that is increasingly getting its video online," said Mr Kevin Mayer, Disney executive vice-president for corporate strategy. "And it gives us a lot of data to help promote our other businesses to them." The deal will be "mildly dilutive" to earnings per share through fiscal 2017, Mr Mayer said. Disney's fiscal year closes at the end of September.
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