Disney has been rumored to acquire multi-channel YouTube network Maker Studios, and today confirmed the deal, worth a reported minimum of $500 million.
The media company will also pay out an additional $450 million based on performance, and if certain goals are met.
Maker Studios features over 55,000 YouTube channels with a combined 380 million subscribers, and 5.5 billion views per month.
The network will keep its headquarters in California, and report directly to Disney CFO Jay Rasulo.
From Disney CEO Robert A. Iger:
“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.”
Maker CEO Ynon Kreiz says that Disney “is the ideal partner for us,” and will allow the network to further its dominant position.
“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.”
The acquisition still requires federal approval, and Disney expects the deal to close by Q3 2014.