Time Warner is talking to YouTube Multi-Channel Network (MCN) Fullscreen about a possible acquisition.
Time Warner has entered the growing roster of companies, such as Yahoo and Relativity Media, to show interest in the company. Fullscreen is one of the largest and highest-profile MCNs currently operating on YouTube with 380 million subscribers and over 3 billion monthly video views shared between over 30,000 partner channels. Although the company reported between $50 million and $70 million in revenue last year, like most MCNs the company is not profitable.
This news closely follows a bevy acquisition announcements in the online video space over the last three months. Maker Studios, another leading MCN, was acquired by Disney in a deal that could be worth up to $950 million. In a smaller deal, boutique MCN Big Frame was acquired by larger MCN AwesomenessTV in a deal that’s said to be worth $15 million. AwesomenessTV itself was also acquired by Dreamworks Animation for $33 million in May, 2013.
Citing a “person with knowledge of the matter,” Bloomberg reports that Fullscreen is seeking acquisition at or close to the a valuation commanded by Maker Studios.
Fullscreen is no stranger to acquisitions. The company acquired video social network Viddy for between $10 and 20 million at the start 2014. However, with a potential billion dollars or more on the table this time around, Fullscreen have hired Allen & Co to advise them on the best way to proceed with the acquisition.
Time Warner has held and interest in new media investments for some time now, having led a funding round for Maker Studios in 2012.
While these rumors from unnamed sources may come to nothing, it’s worth noting that acquisition rumors circled Maker Studios for almost three months before the Disney deal was announced.