Verizon acquires stake in video company AwesomenessTV
07 April 2016 |
Verizon Communications is to acquire a 24.5% stake in online video company AwesomenessTV in a deal that values the startup at $650 million.
Its acquisition of AwesomenessTV – known for its YouTube channel featuring entertainment for youths – signals the telco’s ambitions to tap into the youth market.
In addition to its equity investment, Verizon will enter into an agreement with AwesomenessTV to launch what it claims to be a “first-of-its-kind” short-form mobile video service featuring key talents.
“AwesomenessTV has demonstrated an ability to zero in on programming that Gen Z and millennials want to watch," said Marni Walden, executive vice president and president of Verizon’s product & new business innovation at Verizon.
Verizon’s stake in the video company reduces DreamWorks’ stake to 51% while Hearst will own the remaining 24.5%. DreamWorks Animations had acquired the company in 2013 for $33 million.
The service will initially be exclusive to Verizon platforms in the US while AwesomenessTV will retain the right to sell content across the world.
Earlier in March, Verizon Digital Media Services agreed to acquire video capture provider Volicon in a move to strengthen its expertise in content creation.