News
Deal values DreamWorks-owned online video company at $650 million.
Verizon on Wednesday agreed to acquire a 24.5% stake in AwesomenessTV in a deal valuing the online video company at US$650 million (€569.11 million).
AwesomenessTV is known for its popular YouTube channel, which features various factual and entertainment programming for young people, and has more than 3.6 million subscribers. It also produces shows that are available through Verizon’s go90 mobile video service.
It was acquired in 2013 by production company DreamWorks Animation for $33 million. In 2014, media giant Hearst acquired a 25% stake in AwesomenessTV for $81.25 million.
The deal announced on Wednesday will see Verizon take a 24.5% stake in the company, reducing DreamWorks’ stake to 51%. Hearst will hold the remaining 24.5%.
In addition to its equity investment, Verizon has also agreed a multi-year deal to fund a premium, short-form mobile video service in partnership with AwesomenessTV. The new service will operate as a new and independent brand, and will be available as part of Verizon’s go90 mobile video offering.
"In addition to delivering compelling scripted and non-scripted series with high production values, AwesomenessTV has demonstrated an ability to zero in on programming that Gen Z and millennials want to watch," said Marni Walden, president of product and new business innovation at Verizon, in a statement.
"The content AwesomenessTV has produced for go90 has exceeded all our expectations," she continued. "That’s why we want to be in the AwesomenessTV business."
The new premium content will be exclusive to Verizon in the U.S., but AwesomenessTV will retain the right to sell it to the rest of the world.
"This deal gives us the resources to work with the biggest talent in front of and behind the camera to create this new branded service and produce the most premium short-form content ever, made specifically for the device racking up the fastest growing viewership – the mobile phone," said AwesomenessTV CEO Brian Robbins.
The deal is expected to close within the next 60 days.
