Purchase would boost Disney’s presence in online video market.
Walt Disney is considering to acquire Maker Studios, which offers the majority of the content for YouTube.
Citing reports, Re/code revealed that the deal could be worth $500m, and could potentially reach up to $900m. If the deal goes through, it would mark one of the most significant investments in a YouTube developer by a conventional media major.
Anticipated to be revealed within the next two weeks, the deal would boost Disney’s presence in the rapidly expanding online video market.
Attracting a total of 5.5 billion video views per month, Maker promotes, produces and distributes videos targeted at ‘millennials’.
The company has raised about $70m in funding via investors including Time Warner Investments.
While Maker would not be Disney’s first online acquisition, it could turn out to be its biggest so far.
Walt Disney’s Internet and game division Disney Interactive has recently revealed plans to slash about 700 employees, about 26% of its overall workforce.
Photo: Joe Penniston; Express Monorail