Disney Acquires Maker Studios for $500 Million-Plus

Disney Acquires Maker Studios for $500 Million-Plus

The massive YouTube-based video network has 380 million subscribers

The Walt Disney Company just expanded its internet kingdom in a significant and expensive way.

TWDC announced on Monday afternoon that it had reached a deal to acquire Maker Studios, the massive online video network, for $500 million in total consideration and up to $450 million in performance-based rewards. Maker is the leading YouTube network, boasting 55,000 channels, 380 million subscribers and 5.5 billion views per month on the Google-owned platform.

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“Short-form online video is growing at an astonishing pace and with Maker Studios, Disney will now be at the center of this dynamic industry with an unmatched combination of advanced technology and programming expertise and capabilities,” Robert A. Iger, Disney chairman and CEO, said in a statement.

It had been previously reported that Disney was in talks to buy the company; several other online networks have sold or aligned with studios of late, including AwesomenessTV (to DreamWorks Animation) and Machinima, which took investment from Warner Bros.

Previously, Maker Studios raised $36 million in late 2012, with investors valuing the company at $300 million; at TheWrap‘s conference last September executive chairman Ynon Kreiz said Maker would be a billion-dollar company. It also acquired the Blip video player platform, part of its plan to make profit outside of YouTube, which could not deliver enough in advertising fees to match the network's ambitions.

Obviously, Disney's money certainly was able to do so.

  • Honey Badger Don't Care

    I remember watching a documentary about maker studios a few years ago. They made such a big deal about how they are independent, and going against the big corps.

    But it turns out that it was all a bunch of BS, bc they sold out at the first chance they got.