AT&T-Chernin Joint Venture Agrees to Buy Majority Stake in Fullscreen

By Tess Stynes 

Otter Media, a joint venture between AT&T Inc. and media company Chernin Group, agreed to acquire a majority stake in YouTube video producer Fullscreen Inc.

Financial details of the deal, expected to close within the next month, weren't provided.

The Wall Street Journal in July had reported that Otter Media was in advanced talks with Fullscreen and that a potential deal was likely to value Fullscreen at around $250 million.

The deal marks the latest in a series of acquisitions of so-called multichannel networks, startups which recruit popular YouTube stars and help them sell ads next to their online clips in return for a cut of ad revenues.

"We are excited to have Fullscreen as an integral part of Otter Media, as thissupports our focus on youth-based content," said Aaron Slator, president, Content Development, AT&T.

Under the deal, Fullscreen Founder and Chief Executive George Strompolos will remain CEO and maintain an ownership stake in the company. Fullscreen's management team will continue in their roles.

Chernin Group, a media company formed by high-powered executive Peter Chernin, earlier this year joined with AT&T to invest more than $500 million in a new venture fund geared toward online video programming.

Fullscreen, founded in 2011, raised $30 million from investors including Chernin, Comcast Ventures and WPP Digital. WPP will continue as a strategic shareholder in Fullscreen.

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