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AT&T Buys Out Chernin, Acquiring All of Otter Media

AT&T acquired The Chernin Group’s controlling interest in Otter Media as it continues to add content assets to its distribution and data business.

A digital media and advertising company, Otter Media is comprised of brands including Ellation, Crunchyroll, VRV and Fullscreen. It also has stake in Gunpowder & Sky and Reese Witherspoon’s Hello Sunshine.

Otter Media will become a part of AT&T’s WarnerMedia unit. Otter Media CEO Tony Goncalves will report to WarnerMedia CEO John Stankey.

Analysts value the deal at about $1 billion, according to the New York Times.

“Working with Tony, we look to harness Otter’s expertise in feeding the passion of online audiences to augment our portfolio of digital assets and help us further engage, connect and entertain consumers around the globe,” said Stankey.

Related: Stankey: New AT&T in 'Battle for Customer Engagement' 

In the four years since Otter Media was founded, the company has acquired digital assets and has generated an audience of 93 million unique monthly consumers and expect to deliver more than 75 billion video views this year.

“From the outset, [AT&T CEO] Randall Stephenson and John Stankey championed the Otter strategy and vision, and AT&T has been an ideal partner in building the business — smart, creative and supportive,” said Chernin Group CEO Peter Chernin, a former Fox executive. “With AT&T’s direct-to-consumer relationships, vast data and varied content, I believe they can accelerate Otter’s growth. The combination with WarnerMedia will create a new-era media company, serving customers with every type of content delivered through every possible distribution channel.”