Verizon (VZ) announced it has entered into an agreement to purchase an approximate 24.5% stake in AwesomenessTV. Upon completion of this transaction, the AwesomenessTV multi-platform media company will be valued at approximately $650M.
DreamWorks Animation (DWA), which acquired AwesomenessTV in 2013, will remain the company’s majority stakeholder with an approximate 51% ownership of outstanding shares, while Hearst will own the remaining 24.5%. Brian Robbins, AwesomenessTV founder and CEO, and Brett Bouttier, AwesomenessTV’s president, will continue to lead the company. In addition to its equity investment, Verizon will enter into an agreement with AwesomenessTV to create a first-of-its-kind premium short-form mobile video service featuring leading talent in front of and behind the camera. The new service will operate as a new and independent brand, and feature premium transactional content for a variety of audiences. The new service will launch as part of the go 90 offering and Verizon will fund the initiative through a multi-year agreement with AwesomenessTV.
LionTree Advisors LLC acted as advisor to Verizon during this transaction and J.P. Morgan Securities LLC advised DreamWorks Animation. The transaction is subject to customary closing conditions. The parties currently expect that the transaction will be completed within the next 60 days.
