Disney added yet another trophy to its entertainment empire Monday with the purchase of YouTube network Maker Studios. The deal, which could be valued at as much as $950 million if Maker meets certain growth targets, isn’t as big as Disney’s $4 billion purchases of Lucasfilm and Marvel, but it could have huge strategic significance to the company’s long-term health.
Maker Studios partners with YouTube video creators on 55,000 different channels that cover a wide range of topics, from video games to sports to fashion. In exchange for providing technical, financial and promotional support, Maker collects a portion of the ad revenues for videos that are posted in its network. Details on the company’s financial performance are closely guarded, but it has grown considerably in the past year, from 2 billion YouTube views per month in late 2012 to 5.5 billion currently.
Now, Disney will have direct access to Maker’s viral stars and its 380 million YouTube subscribers. Read about the five ways Disney may use Maker to boost its overall business here.