Yahoo and Relativity Media are no longer the only players in the fight over who gets to buy Fullscreen Inc., the popular YouTube video network. Time Warner Inc. has reportedly joined in.
Fullscreen operates a network of channels on YouTube, the world’s most popular video streaming site. Under these circumstances, it’s not exactly a surprise that all these companies are interested in the acquisition.
The price tag put on the company seems to be quite steep, sources have told Bloomberg. In fact, George Strompolos, chief executive officer, is said to be seeking a similar price to what Disney paid for Maker Studio.
Maker Studio is a similar company that provides top online videos for more than 55,000 channels. It had some 380 million subscribers and 5.5 billion views per month on YouTube. Disney paid $500 million (€363 million) and promised another $450 million (€327 million) if performance targets are met.
By comparison, however, Fullscreen isn’t doing this well. In fact, according to data provided by the company, there are 380 million subscribers and over 3 billion monthly video views, but Fullscreen isn’t profitable. In fact, the company generated only between $50 million (€36 million) and $70 million (€51 million) in revenue last year.
Other companies have sealed similar deals in recent months, including Walt Disney, DreamWorks Animation and Warner Bros.