Disney Acquires Maker Studios

Burbank, Calif.,  March 25, 2014 – The Walt Disney Company announced that  they are acquiring Maker Studios, the leading network of online video content on YouTube. Maker Studios shareholders will receive total consideration of US$ 500 million, and a performance-linked earn-out of up to US$450 million if the strong performance targets are met, according to the company.

With more than 55,000 channels, 380 million subscribers and 5.5 billion views per month on YouTube, Maker is one of the top online video networks for Millennials.

By acquiring Maker Studios, Disney will gain advanced technology and business intelligence capability regarding consumers’ discovery and interaction with short-form online videos, including Disney content, according to the company.

“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,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company.

Maker Studios will report to Disney Chief Financial Officer Jay Rasulo. Maker Studios will remain headquartered in Culver City, Calif., with operations in New York and London.

The transaction, which is subject to regulatory clearances, is expected to close in Disney’s third fiscal quarter.