Chernin Group, AT&T acquire Creativebug
July 15, 2014
Otter Media, the newly-named venture between AT&T and The Chernin Group, has acquired Creativebug, one of the leading go-to sources for high-quality online video arts and crafts instruction, from Demand Media.
Otter Media is focused on acquiring, investing in and launching OTT video services, positioning the alliance to take advantage of the rapid growth of OTT subscription video services.
“Creativebug has inventively and successfully tapped into this powerful and engaged crafts audience who are passionate about making and creating,” said Sarah Harden, Executive Vice President at the Chernin Group. “Online video is the perfect medium to connect leading artists to their audiences across the globe. And the team at Creativebug has built out a very strong leadership position in this category. We look forward to supporting their continued growth alongside our other offerings.”
“With Creativebug, Jeanne and Julie have built and nurtured a place for arts and crafts enthusiasts of all skill sets and levels to learn and connect,” said Ursula Morgan, CEO, Creativebug. “We are excited about reaching further into this community, thanks to the amplified resources of this new relationship, and to continue to extend our premium video class offerings.”
Creativebug’s existing team, led by newly-named CEO Ursula Morgan; Chief Creative Officer and Co-Founder Jeanne Lewis; VP, Operations & Partnerships and Co-Founder Julie Roehm; and VP, Editorial and Co-Founder Kelly Wilkinson will continue with the company.
The deal builds upon Otter Media’s existing portfolio of OTT video services, including its majority stake in Crunchyroll, a leading subscription and ad-supported video service. Crunchyroll is a global destination and platform for Japanese animé and Asian content. It delivers more than 25,000 episodes and 15,000 hours of officially-licensed content from leading Asian media producers directly to viewers within minutes of TV broadcast.
AT&T and The Chernin Group formed Otter Media in April 2014 to acquire, invest in and launch global over-the-top (OTT) video services. With more than $500 million in funding committed to the venture, the alliance positions both companies to take advantage of the rapid growth of online video and OTT video services, with each party bringing significant and complementary strengths. One of the strategic focuses of the venture is to invest in and build advertising and OTT video services for targeted audiences.