AT&T Buys Out Chernin Group's Stake in Otter Media
The deal will give AT&T full ownership of Otter Media's stakes in Fullscreen, Crunchyroll and Rooster Teeth.
AT&T and The Chernin Group are ending their joint venture in Otter Media.
The telecom giant has acquired TCG's controlling interest in Otter Media, the companies announced Tuesday. The move gives AT&T a full stake in subscription video provider Ellation, Crunchyroll, Fullscreen and Rooster Teeth. Otter Media also has ownership stakes in Gunpowder & Sky and Reese Witherspoon's Hello Sunshine.
The move, widely expected once AT&T's acquisition of Time Warner was completed, became even more likely after Otter appointed AT&T executive Tony Goncalves as its CEO earlier this year. Goncalves will continue to run the company under AT&T.
"We are thrilled to incorporate the Otter Media brands and talent into WarnerMedia," said John Stankey, CEO of AT&T's new WarnerMedia division. "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 Peter Chernin's TCG launched Otter Media in 2014 through a $500 million investment as a venture to buy, invest in and grow digital media businesses. Its portfolio of properties now reach more than 93 million monthly unique viewers and is expected to reach 75 billion video views this year.
Chernin said in a statement that he believes AT&T "can accelerate Otter's growth. The combination with Warner Media will create a new-era media company, serving customers with every type of content delivered through every possible distribution channel."
Terms of the deal were not disclosed.