Disney buys Maker Studios for $500m

The Walt Disney Company has paid US$500m for Maker Studios, one of YouTube’s largest multi-channel networks (MCN).

Maker, founded in 2009, boasts 55,000 channels, 380 million subscribers and 5.5 billion video views a month on YouTube, with its producers mostly targeting the younger millennial generation.

The deal, mooted earlier this month, could see Disney pay another US$450m if Maker hits certain performance targets.

“Shortform online video is growing at an astonishing pace and with Maker Studios, Disney will now be at the centre of this dynamic industry with an unmatched combination of advanced technology and programming expertise and capabilities,” said Bob Iger, chairman and CEO of The Walt Disney Company.

The Maker deal is Disney’s biggest acquisition since it bought Star Wars creator LucasFilm for US$4.05bn in late 2012.

The news comes after Ben Sherwood was yesterday named successor to Anne Sweeney as co-chairman of Disney Media Networks and president of Disney/ABC Television Group.

Maker, chaired by former Endemol boss Ynon Kreiz, has been through its own restructuring since he took over and co-founder and former CEO Danny Zappin left.

The Maker deal comes after US studio Warner Bros led a US$18m round of investment in struggling YouTube network Machinima earlier this month.

Last year, DreamWorks Animation bought the AwesomenessTV network for US$33m, with a bonus potential of US$117m if the studio met earnings targets over two years.

Meanwhile, RTL Group invested US$36m in BroadbandTV, while The Chernin Group, Comcast and WPP put a reported US$30m into Fullscreen, which vies with Maker for the number-one MCN spot.

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