Through their joint venture Otter Media, AT&T (NYSE: T) and the Chernin Group have confirmed their earlier reported intention to buy YouTube programming network Fullscreen.
The size of the deal is not yet known, but Re/code puts Fullscreen's valuation at somewhere between $200 million to $300 million.
Re/code says Fullscreen CEO and founder George Strompolos will remain in charge of the company. Advertising conglomerate WPP, a key Fullscreen investor, will remain what the tech blog's PR-firm source refers to as a "strategic shareholder."
Fullscreen's acquisition represents what AT&T chief strategy officer, John Stankey calls another "leg of the stool" in the company's quest to leverage its proposed DirecTV (NASDAQ: DTV) acquisition.
Speaking last week at a New York investment bank conference, Stankey said that should the merger be approved by regulators, AT&T would not only be programming for nearly 28 million pay-TV homes, but the 100 million mobile device users that its network services.
Crucial to that effort: working with Chernin to create "snack-sized" short-form video aimed at a millennial audience.
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AT&T and Chernin set to make the next big YouTube network buy, Fullscreen