Otter Media, the joint venture between Chernin Group and AT&T, is finalizing a deal to purchase a majority stake of YouTube network Fullscreen, Re/code reported. The deal reportedly values Fullscreen at between $200 million and $300 million.
Re/code's sources said that Fullscreen CEO George Strompolos will continue running Fullscreen and "retain a meaningful equity stake." He reportedly has plans to launch a paid site featuring Fullscreen network stars.
Chernin Group and AT&T originally invested $30 million on the startup back in 2013. Now Fullscreen has grown to generate 3.5 billion views per month. The deal, when finalized, would mark Otter Media's second major acquisition of the month, following the purchase of crafting video site Creativebug for $10 million last week.
The acquisition would also take one of the last remaining companies with a sizeable YouTube presence off the market, which is one of the reasons Fullscreen has generated so much investor interest. It would be a big win for Otter Media, which is backed by over $500 million, and a major addition to its growing web media empire.