Online Video Investment Fund From Chernin Group, AT&T Makes First Purchase
The venture fund, which focuses on over-the-top video services, has acquired crafting website Creativebug.
Otter Media, the newly named venture fund from The Chernin Group and AT&T, has made its first acquisition, scooping up crafting website Creativebug for $10 million from Demand Media.
Founded in 2012 by Jeanne Lewis and Julie Roehm, the San Francisco-based Creativebug uses videos to provide instructions for do-it-yourself arts and crafts projects. It sold to Demand Media in 2013 as the Santa Monica-based company looked to ramp up its instructional video network, which includes website eHow. The Creativebug network currently offers more than 300 online classes.
"With Creativebug, Jeanne and Julie have built and nurtured a place for arts and crafts enthusiasts of all skill sets and levels to learn and connect," said Creativebug CEO Ursula Morgan. "We are excited about reaching further into this community, thanks to the amplified resources of this new relationship, and to continue to extend our premium video class offerings."
The company's existing team will remain with the business.
The deal is the first for Otter, which was established in April this year with $500 million to invest in digital media properties including advertising and subscription video-on-demand channels and streaming operations. The fund already owns a majority stake in Crunchyroll, a Japanese animation site, through a previous Chernin Group investment.
"Creativebug has inventively and successfully tapped into this powerful and engaged crafts audience who are passionate about making and creating," said Chernin Group executive vp Sarah Harden. "Online video is the perfect medium to connect leading artists to their audiences across the globe. And the team at Creativebug has built out a very strong leadership position in this category. We look forward to supporting their continued growth alongside our other offerings."
Chernin Group, founded by Peter Chernin, also owns stakes in YouTube multichannel networks Fullscreen and MiTu.