Chernin Group, AT&T Create $500 Million Online Video Fund
The Chernin Group has teamed with AT&T to create a $500 million fund that will invest in, acquire and launch over-the-top video services. The fund will be focused on advertising and subscription video-on-demand channels as well as streaming services.
Peter Chernin’s investment vehicle has been active in the YouTube and online video ecosystems since its launch in 2010. In October 2013, it acquired a majority stake in online video company Crunchy Roll, which focuses on Japanese animation. The company also holds stakes in YouTube multichannel networks Fullscreen and MiTu.
Chernin said that the fun underscores the firm’s investment in the online video industry.
“Consumers are increasingly viewing video content on their phones, tablets, computers, game consoles and connected TVs on mobile and broadband networks,” he added. “AT&T’s massive reach on those platforms across mobile and broadband and their commitment to the online video space make them the perfect fit for this venture with us.”
AT&T chief strategy officer John Stankey added that the company has joined forces with Chernin to “address the growing consumer demand for accessing content how and when they want it. Combining our expertise in network infrastructure, mobile, broadband and video with The Chernin Group’s management and expertise in content, distribution and monetization models in online video creates the opportunity for us to develop a compelling offering in the OTT space.”