August 8, 2018
WarnerMedia has assumed control of Otter Media after corporate parent AT&T acquired The Chernin Group’s controlling stake in the joint venture. Financial terms of the deal were not disclosed.
AT&T and former Fox executive Peter Chernin founded Santa Monica, Calif.-based Otter Media in 2014 to develop direct-to-consumer subscription video and advertising business models.
The company claims a global audience of more than 93 million unique monthly consumers, with more than 75 billion video views projected this year. Additionally, Otter Media’s SVOD platforms have more than 2 million paying subscribers.
Otter Media subsidiaries include Ellation, a SVOD service provider with content offerings under the Crunchyroll and VRV brands, as well as digital media company Fullscreen and its Rooster Teeth brand. Otter also has ownership stakes in Gunpowder & Sky studio, as well as Hello Sunshine, a media company founded by Oscar winner Reese Witherspoon.
Otter Media will continue to run by Tony Goncalves, who was named CEO earlier this year. Goncalves reports to WarnerMedia CEO John Stankey.
“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,” Stankey said in a statement.
“With AT&T’s direct-to-consumer relationships, vast data and varied content, I believe they can accelerate Otter’s growth,” added Chernin. “The combination with WarnerMedia will create a new-era media company, serving customers with every type of content delivered through every possible distribution channel.”