Walt Disney Co. made an official announcement that it reached an agreement to buy Maker Studios for at least 500 million dollars. According to the companys statement, it agreed to pay as much as 450 million dollars more in case Maker Studios manages to meet “strong” performance targets, which can increase the total sum of the acquisition to 950 million dollars.
The Chairman and Chief Executive Officer Mr. Robert Iger said in the companys statement, which was cited by Bloomberg: “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.”
Walt Disney Co. is said to be planning to use its new acquisition in order to facilitate uploading its already existing content online. The company is also trying to expand its audience into the online video business, which it hopes will become easier after the acquisition of Maker Studios is finalized. Currently, Maker Studios is known for being a supplier of online video content to YouTube, but it also owns 55,000 channels and has about 380 million subscribers. Its audience consists primarily of young people who are not interested in traditional media.
Mr. Kevin Mayer, who is Disneys Executive Vice President of corporate strategy, said for the Wall Street Journal: “We havent bought something like this before. If Im going to make a bet on the future, its short form video and younger audiences. We believe the presence of Maker, especially as part of the Walt Disney Company, is a good thing for YouTube and vice versa.”
The announcement about the acquisition of Maker Studios comes at a moment when Disney has just named the new co-chairman of its media networks unit, who is to succeed Anne Sweeney after her planned departure from the company in January 2015. The position will be occupied by Ben Sherwood, who is also ABC News president.
Robert Iger, the Chief Executive Officer of Walt Disney Co. commented on Mr. Sherwoods appointment in an interview for the Wall Street Journal: “His track record is excellent both in terms of strengthening ABC News and forward-thinking in terms of programming and distribution.” As reported by Bloomberg, Mr. Iger also said: “Ben is one of those unique executives who combine rich creative experience with great business acumen. He’s also focused, strategic and competitive.”
Walt Disney Co. fell by 1.07% in New York on Monday and closed the session at $79.49 per share, marking a one-year change of +41.42% and a market value of $139.27 billion. According to CNN Money, the 28 analysts offering 12-month price forecasts for Walt Disney Co. have a median target of $80.50, with a high estimate of $95.00 and a low estimate of $68.00. The median estimate represents a +1.27% increase from the last price of $79.49.
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