Hearst Corp. has bought a 25 per cent stake in AwesomenessTV, the teen-focused digital video network owned by DreamWorks Animation, the Financial Times reported.
The deal values Awesomeness at US$325 million two years after DreamWorks paid US$33 million for the network.
Hearst, a US media conglomerate, owns cable television networks, magazines such as Cosmopolitan and Esquire, and stakes in Vice Media and Roku, which makes digital streaming set-top boxes.
Neeraj Khemlani, head of Hearst’s digital entertainment arm, was quoted by the FT as saying the firm had bought the US$81.25 million stake because of Awesomeness’s popularity with teens and young women.
“Their audience size has grown exponentially … they are reinventing how stars are born and media is created,” Khemlani said. “We see this as a next generation entertainment company.”
Awesomeness packages YouTube videos produced by its network of users with its own digital content.
The company has created a clothing, beauty and makeup line that is marketed by its digital stars and sold in shops.
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