|[March 24, 2014]
The Walt Disney Company to Acquire Maker Studios, the Leading Network of Online Video Content
BURBANK, Calif. --(Business Wire)--
Furthering its goal of bringing content to consumers on all the
platforms they prefer, The Walt Disney (News - Alert) Company (NYSE:DIS) has agreed to
acquire Maker Studios, the leading network of online video content on
Maker Studios shareholders will receive total consideration of $500
million, and a performance-linked earn-out of up to $450 million if the
strong performance targets are met.
With more than 55,000 channels, 380 million subscribers and 5.5 billion
views per month on YouTube (News - Alert), Maker has established itself as the top
online video network for Millennials.
By acquiring Maker Studios, Disney will gain advanced technology and
business intelligence capability regarding consumers' discovery and
interaction with short-form online videos, including Disney content.
"Short-form online video is growing at an astonishing pace and with
Maker Studios, Disney will now be at the center of this dynamic industry
with an unmatched combination of advanced technology and programming
expertise and capabilities," said Robert A. Iger, Chairman and Chief
Executive Officer, The Walt Disney Company.
"Disney is synonymous with the best entrtainment and is the ideal
partner for us, strengthening our position as the leading player in
online video," said Ynon Kreiz, Executive Chairman and CEO of Maker
Maker Studios will report to Disney Chief Financial Officer Jay Rasulo.
Maker Studios will remain headquartered in Culver City, Calif., with
operations in New York and London.
The transaction, which is subject to regulatory clearances, is expected
to close in Disney's third fiscal quarter.
About The Walt Disney Company
The Walt Disney Company, together with its subsidiaries and affiliates,
is a leading diversified international entertainment and media
enterprise with five business segments: media networks, parks and
resorts, studio entertainment, consumer products and interactive. Disney
is a Dow 30 company and had annual revenues of $45 billion in its Fiscal
About Maker Studios
Maker Studios is a next-generation media and technology company and the
world's largest provider of online video content for Millennials. Maker
Studios has more than 5.5 billion monthly video views and 380 million
subscribers, targeting the coveted Millennial audience. Maker Studios is
headquartered in Culver City, Calif., and has operations in New York and
Certain statements in this press release may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are made on the basis of
management's views and assumptions regarding future events and business
performance as of the time the statements are made. Management does not
undertake any obligation to update these statements. Actual events may
differ materially from those expressed or implied. Such differences may
result from actions taken by the Company, as well as from developments
beyond the Company's control, including international, political, health
concern and military developments and changes in domestic and global
economic conditions that may affect our businesses generally. Additional
factors are set forth in the Company's Annual Report on Form 10-K for
the year ended September 28, 2013 under Item 1A, "Risk Factors," and
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