Top multichannel network Fullscreen, which was recently acquired by Otter Media--the joint venture of AT&T and the Chernin Group--has purchased Rooster Teeth, a smaller but established media brand, for an undisclosed sum.
Rooster Teeth has a smaller following--about 16 million YouTube subscribers--but a devoted one, with its viewers mostly part of the male 18-36 demographic. The company, since its founding in 2003, has had a long-running, popular gaming comedy series, "Red vs. Blue." It also sells music, merchandise and video games and hosts an annual gaming convention, Rooster Teeth Expo.
"During the last three years Rooster Teeth has grown at a crazy pace. We've been releasing more videos than at any time in our history," wrote Matt Hullum, CEO, in a blog post on the company's website.
"All of this growth has been amazing and exhilarating, but it's also made us realize we need more support if we are going to take our company and our community even further," he added. "Burnie [Burns, co-founder and creative director] and I have been searching for a partner that could help Rooster Teeth to develop and grow, while allowing us to remain true to our core ideals and principles."
Fullscreen's purchase reflects Otter Media's goal of exploring ways to monetize OTT content. It also is in line with Fullscreen's own objectives: to grab an even bigger share of the youth market and to migrate off of YouTube, along with its biggest stars. It's likely that Rooster Teeth will make the trip. "With AT&T as a strategic investor in Otter Media, we are well positioned to redefine youth media in today's digital-first world," CEO George Strompolous said in September.
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