AAA Otter swims out to Fullscreen

Otter swims out to Fullscreen

Otter Media, the joint venture formed by telecommunications company AT&T and media company Chernin Group, is set to acquire a majority stake in US-based YouTube network Fullscreen, Re/code reported yesterday.

Although the report did not state how much Otter is planning to invest or the precise size of the stake, sources told Re/code that the deal would value Fullscreen at between $200m and $300m.

Chernin led a $30m series A round for Fullscreen in June 2013 that also featured advertising firm WPP’s corporate venturing unit, WPP Digital, and Comcast Ventures, the corporate venture capital arm of cable and internet service provider Comcast. That round valued Fullscreen at about $110m.

Otter, which is funded by $500m of AT&T’s money, was formally announced earlier this month. It will concentrate on investing in online video and has also lined up a $10m acquisition of craft-focused video site Creativebug from the site’s owner, Demand Media.

Reports in May suggested media conglomerate Time Warner was in talks over buying Fullscreen.

Chernin has already been active in the online video sector his year, buying another YouTube channel, Base79, for $86m earlier this month, while one of its portfolio companies, Latino-focused YouTube channel MiTu, raised $10m in June.

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