In a move to secure an online platform for its family oriented movies, DreamWorks Animation SKG has entered into an agreement to purchase the YouTube network AwesomenessTV. The deal is said to be worth US$33 million initially and additional payments reaching US$117 million when earnings targets are met in years 2014 and 2015.
The transaction is expected to be completed by month's end.
AwesomenessTV is a network of YouTube channels with nearly 14 million subscribers. The 55,000 different channels feature online talk shows, sketch comedy clips and online video series with teenagers as their main target audience. It is one of the original channels that YouTube supported in the past year and a half since its acquisition by Google.
The largest online video community has put in more than US$100 million in helpong 150 media partners create and market their unique YouTube video channels for topics from sports to food. The goal is to improve the video quality, both in terms of aesthetics and technology, in order to gain a larger share of advertising dollars.
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