Seeking Alpha

Disney buying Maker Studios for up to $950M

  • As rumored, Disney (DIS) is acquiring top YouTube content provider Maker Studios. The media giant is paying $500M up-front + up to $450M in performance earn-outs.
  • Maker receives 5.5B monthly video views via 380M YouTube channel subscribers. Disney asserts the startup also provides it with "advanced technology and business intelligence capability regarding consumers discovery and interaction with short-form online videos."
  • Maker segments its videos into one of four "networks": Men, Women, Family, and Entertainment. Its material ranges from fashion shows to music performances to children's cartoons.
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Comments (5)
  • The Growth Investor
    , contributor
    Comments (201) | Send Message
     
    Building the great future that I recently wrote about for Disney: http://seekingalpha.co...
    24 Mar 2014, 05:52 PM Reply Like
  • Blackbeard
    , contributor
    Comments (109) | Send Message
     
    Amazing considering DIS purchased LucasFilm (Star Wars) for $4 billion recently. A series of YouTube channels for 1/4 the price of Star Wars!
    24 Mar 2014, 10:09 PM Reply Like
  • The Growth Investor
    , contributor
    Comments (201) | Send Message
     
    New media : ) But...these numbers are amazing: 55,000 channels, 380 million subscribers and 5.5 billion views per month on YouTube.
    24 Mar 2014, 10:20 PM Reply Like
  • Overanalytical
    , contributor
    Comments (835) | Send Message
     
    Maybe it's just because of ignorance, but I don't see how this translates into billions for Disney. Where's the money going to be made? Just ads?
    25 Mar 2014, 10:00 AM Reply Like
  • Patent News
    , contributor
    Comments (1369) | Send Message
     
    It can translate into billions as YOUTUBE is a good substitute for cable TV and Netflix ins ome circumstances.
    25 Mar 2014, 12:53 PM Reply Like
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