AT&T-Chernin JV buys Creativebug
Michelle Clancy | 16 July 2014
Otter Media, the newly named venture between AT&T and The Chernin Group devoted to over-the-top (OTT) innovation, is to acquire online video arts and crafts business Creativebug for $10 million.
The company, the JV's first outright acquisition, specialises in online how-two crafts videos.
"Creativebug has inventively and successfully tapped into this powerful and engaged crafts audience who are passionate about making and creating," said Chernin Group executive vice president Sarah Harden. "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."
Creativebug CEO Ursula Morgan will continue to lead the company.
AT&T and Chernin Group announced their JV back in April, with $500 million in funding. Its portfolio to date most notably includes a majority stake in Japanese anime and Asian content specialist Crunchyroll, which offers a subscription and ad-supported video service.
In a separate announcement, Demand Media has completed the sale of its real-time engagement solution business, CoveritLive, to Toronto-based ScribbleLive.
"These divestitures allow Demand Media to refocus attention from nascent businesses in emerging markets to opportunities that are more in line with our overall growth strategy," said Shawn Colo, interim CEO of the company, whose brands include eHow, Cracked, LIVESTRONG.com and Society6. "By streamlining our approach to the business, we can more effectively connect passionate audiences with engaged experts, artists and opinion-makers across our consumer lifestyle brands and our content solutions partners."
The terms of the deals were not released.