MiTu, a YouTube network founded by former TV industry executives, will use the money to recruit new partners and better monetize its channels
The Chernin Group has led an investment round in MiTu, a YouTube network dedicated to Latino content that spans more than 350 channels.
Neither side will disclose the size of the investment, but an individual with knowledge of the deal pegged the total at $3 million, the bulk of it coming from Peter Chernin’s company.
TCG will now hold a 25 to 30 percent stake in MiTu, and the money will be used to expand the company’s teams in the United States, Mexico and Colombia. In particular, it will look for new channels to partner with, new talent to bring on to the network and, like most networks, aim to better monetize its channels.
MiTu, founded by TV industry veterans Roy Burstin, Doug Greiff and Betariz Acevedo, produces both English and Spanish-language channels that make videos about beauty, fashion, food and other lifestyle subjects. Its channels have a subscriber base of more than 2.3 million.
“The MiTú opportunity combines two powerful trends: one, the Latino audience is one of the fastest-growing and youngest demographics in the world and two, YouTube is the largest and fastest-growing online video platform in the world,” Chernin, founder and CEO of TCG, said in a statement. “MiTú not only identified those two trends, but also has been aggressive and smart about launching a consumer-focused brand in this market, targeting a younger Latino audience whose needs are unmet by traditional television. The early results have been astounding and we’re thrilled to partner with them to continue to grow the business.”
This marks the third investment by Chernin’s company in the YouTube space, having already incubated FullScreen and invested in Base 79. The former, founded by former YouTube executive George Strompolos, is one of the biggest multichannel networks on YouTube, according to ComScore. It draws more than 25 million people a month. Base 79 is the largest YouTube network in the Europe, Middle East and Asia region.
TCG was joined in the investment round by Allen DeBevoise, the CEO of Machinima, Shari Redstone’s venture capital firm Advancit Capital, Juan Cristobal Ferrer of Mexico advertising agency Ferrer Comunicacion and CODE Advisors.