Disney to Pay $500 Million for Maker Studios

BURBANK: The Walt Disney Company has agreed to acquire Maker Studios, a YouTube-based video supplier, for a total consideration of $500 million.

Maker Studios has more than 55,000 channels, 380 million subscribers and 5.5 billion views per month. 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.

Maker Studios shareholders will receive total consideration of $500 million, and a performance-linked earn-out of up to $450 million if the strong performance targets are met. Maker Studios will report to Disney's CFO, Jay Rasulo. Maker Studios will remain headquartered in Culver City, CA, with operations in New York and London.

“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, the chairman and CEO of The Walt Disney Company.

“Disney is synonymous with the best entertainment and is the ideal partner for us, strengthening our position as the leading player in online video,” added Ynon Kreiz, the executive chairman and CEO of Maker Studios.