AT&T (NYSE: T) has acquired the Chernin Group’s controlling interest in their joint venture, Otter Media, a subscription, advertising and content company.

Financial terms weren’t disclosed.

Santa Monica, California-based Otter Media is comprised of Ellation, an online subscription video service provider that includes the Crunchyroll and VRV brands, as well as full-service digital media company Fullscreen and its Rooster Teeth brand.

Otter also has ownership stakes in content studio Gunpowder & Sky and Hello Sunshine, a media company founded by actress Reese Witherspoon.

Otter Media will become a part of AT&T’s WarnerMedia unit. Tony Goncalves, who was named Otter's chief executive earlier this year, will continue to run the company, reporting to WarnerMedia CEO John Stankey.

"We are thrilled to incorporate the Otter Media brands and talent into WarnerMedia,” Stanke said in a prepared statement. “Working with Tony, we look to harness Otter’s expertise in feeding the passion of online audiences to augment our portfolio of digital assets and help us further engage, connect and entertain consumers around the globe.”

AT&T and the Chernin Group founded Otter Media in 2014 to invest and develop platforms and properties that capitalize on the growth of direct-to-consumer subscription and advertising models, as well as the rise of new digital media brands.

In the four years since Otter Media’s founding, interest in consuming video online and via mobile devices has accelerated, according to AT&T. In that time, the company’s global audience reached more than 93 million unique monthly consumers and is on pace to deliver over 75 billion video views this year. The company is also one of the top 10 subscription video on demand providers, with more than 2 million paying SVOD subscribers.

“From the outset, (AT&T CEO) Randall Stephenson and John Stankey championed the Otter strategy and vision, and AT&T has been an ideal partner in building the business — smart, creative and supportive,” Chernin said in a prepared statement. “With AT&T’s direct-to-consumer relationships, vast data and varied content, I believe they can accelerate Otter’s growth. The combination with WarnerMedia will create a new-era media company, serving customers with every type of content delivered through every possible distribution channel.”

By: DocMemory
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