AT&T acquires Chernin Group’s controlling interest in Otter Media
MUMBAI: AT&T has acquired The Chernin Group’s controlling interest in Otter Media, the joint venture between the two companies. Otter Media, a subscription, advertising, and content company, comprises wholly-owned subsidiaries Ellation, an online subscription video service provider, with offerings under the Crunchyroll and VRV brands, as well as a full-service digital media company, Fullscreen, and its Rooster Teeth brand.
Otter also has ownership stakes in global content studio Gunpowder & Sky, as well as Hello Sunshine, a media company founded by Reese Witherspoon.
Otter Media will be a part of AT&T’s WarnerMedia unit and Tony Goncalves, who was appointed Otter CEO earlier this year, will continue to run the company, reporting to WarnerMedia CEO, John Stankey.
“We are thrilled to incorporate the Otter Media brands and talent into WarnerMedia. 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” said WarnerMedia CEO John Stankey.
AT&T and The Chernin Group founded Otter Media in 2014 to invest and develop platforms and properties that capitalized on the growth of direct-to-consumer subscription and advertising models, as well as the rise of new digital media brands.
In the four years since Otter Media’s founding, interest in consuming video online and via mobile devices has only accelerated. In that time, the company has established a global audience of more than 93 million unique monthly consumers and is on pace to deliver over 75 billion video views this year. Additionally, the company is one of the top-ten subscription video on demand (SVOD) providers with more than 2 million paying SVOD subscribers.
“From the outset, Randall Stephenson and John Stankey championed the Otter strategy and vision, and AT&T has been an ideal partner in building the business — smart, creative and supportive. With AT&T’s direct-to-consumer relationships, vast data and varied content, I believe they can accelerate Otter’s growth. The combination with WarnerMedia will create a new-era media company, serving customers with every type of content delivered through every possible distribution channel,” said The Chernin Group CEO Peter Chernin.