Disney Studios Makes $500M Bet on YouTube Provider Maker Studios
March 25, 2014
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The Walt Disney Company is making a big move into online after agreeing to purchase one of YouTube's largest content providers, Maker Studios. Disney will pay $500 million upfront for the online video company, with up to $450 million in performance milestone payments. Why is Disney splashing cash on Maker? Its distribution market. Currently, Maker manages 55,000 channels which collectively receive 5.5 billion video views each month. Disney said the deal is expected to close in its third quarter.
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Newsy (Mar. 25, 2014) Disney announced it will acquire Maker Studios. Reports say the buy could get Disney closer to millennial audiences and give Maker a larger platform.
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