Media conglomerate Time Warner is in negotiations to acquire US-based online video network Fullscreen in a deal that would provide exits to several strategic investors, according to Reuters, which cited three undisclosed sources.
WPP Digital, which acts as the investment arm of advertising firm WPP, media and entertainment company Chernin Group, and Comcast Ventures, the corporate venturing arm of media and communications business Comcast, co-led a series A round in June 2013 reported by All Things Digital to be sized at $30m at a $110m valuation.
Founded in California in 2011, Fullscreen operates a YouTube network that incorporates music, film, comedy and video blogging. A source told Reuters that the company generated between $50m and $70m in revenue in 2013 but has not yet reached profitability.
Internet company Yahoo and film studio Relativity Media are also reportedly interested in acquiring Fullscreen.
An acquisition would follow the takeover by another YouTube video network, Maker Studios, by The Walt Disney Company in March. Disney paid $500m for Maker, though the price could increase to $950m dependant on a series of milestones.