US animated film producer DreamWorks Animation SKG Inc (NASDAQ:DWA) said it had agreed to buy local YouTube teen network AwesomenessTV Inc from founder Brian Robbins.
Under the terms of the deal, the buyer will provide an upfront sum of USD33m (EUR25.1m) in cash and up to USD117m in additional cash payments, depending on the target’s fulfillment of certain earnings targets in the next two years.
The target’s Multi-Channel Network has signed up more than 55,000 YouTube channels and attracted over 14m subscribers. The company has also recently expanded into television and film, the buyer said.
Awesomeness TV is considered to be one of the fastest growing content channels on the Internet, DreamWorks Animation’s CEO Jeffrey Katzenberg said, adding that the purchase would support his company’s digital strategy. According to Brian Robbins, the combination would create a channel with an “extraordinary potential”.
The deal, which hinges upon customary closing conditions, is seen closing this month. AwesomenessTV was advised by United Talent Agency Inc and Ziffren Brittenham LLP.