×

Maker Studios Reaches Deal in Principle to Acquire Blip

Deal would give Maker Studios access to Blip technology, as well as an off-YouTube distribution network and content

Maker Studios, a major YouTube multichannel network, has signed an agreement to acquire online video company Blip but the deal is not officially done yet, according to sources close the deal.

Maker Studios declined to comment. Blip reps did not immediately respond to a request for comment.

Deal was reported Wednesday by AllThingsD. The proposed pact still must go through due diligence before it’s official, and that could happen as early as next month, sources said.

With Blip, Maker would have a network off YouTube where it could distribute its content. Conversely, Blip content — from partners including FremantleMedia North America and comedy star Ray William Johnson, who previously worked with Maker Studios before a public dispute — could be distributed and promoted across Maker’s properties.

Maker also is interested in using technology developed by Blip to distribute content to mobile and connected-TV platforms, according to sources.

Maker Studios is one of the largest YouTube MCNs, with 28.6 million unique visitors and 530.7 million video views in July 2013, according to comScore. One of Maker’s channels is PewDiePie, Swedish videogamer Felix Kjellberg, who last week captured the No. 1 spot as the most-subscribed channel on YouTube.

Popular on Variety

SEE ALSO: Maker Studios Founder Danny Zappin Sues Company Over ‘Ouster’

New York-based Blip’s investors include Bain Capital Ventures, Canaan Partners, Ambient Sound Investments and individual angel investors. It has about 50 employees; Blip CEO Kelly Day, who joined the company last year from Discovery Communications, would leave after the acquisition, according to the AllThingsD report.

Maker Studios, which has about 340 employees, is based in Culver City, Calif. Company has raised about $44 million to date. Investors include Time Warner Inc.; Greycroft Partners; Robert Downey Jr.; Elisabeth Murdoch; FUEL: M+C, the investment company for Jon Miller and Jimmy Yaffe; Maker chairman Ynon Kreiz; Daher Capital; and Lightstorm’s Jon Landau.

In May, Maker Studios announced that chairman Ynon Kreiz would replace co-founder and CEO Danny Zappin, who was to become a special adviser to Kreiz.

Subsequently Zappin and three other Maker execs sued the company, alleging breach of contract and fraud. Maker Studios has said the lawsuit is “without merit and the allegations are baseless.”

More Digital

  • HQ Trivia

    HQ Trivia Lives? CEO Claims He's Found Potential Buyer for Live Game-Show App

    Hold the phone, HQties — there might be a second act for HQ Trivia. The once-buzzy live game-show app, whose audience had declined after peaking two years ago, shut down last week after the company ran out of money and a deal to sell it fell through. Now Rus Yusupov, CEO of parent company Intermedia [...]

  • Dolan Twins

    Dolan Twins to Launch Their First Podcast (EXCLUSIVE)

    The Dolan Twins, sibling digital influencers who have a combined following of more than 50 million across internet platforms, are set to launch their first podcast: “Deeper With The Dolan Twins.” The new weekly podcast from 20-year-old Ethan and Grayson Dolan is being produced under an exclusive pact with Cadence13, a division of Entercom Communications’ [...]

  • Justin Bieber Changes album cover

    Following Lil Nas X, Justin Bieber Track Is Latest to Highlight Online Marketplace

    A shout-out on social media from Justin Bieber has brought some additional shine to Splice Sounds, the popular platform for rights-cleared sounds and beats. The track “Running Over,” from Bieber’s album “Changes” and featuring Lil Dicky, was produced by The Audibles and is based on a loop created by British artist Laxcity and uploaded to Splice. [...]

  • LadBaby at Abbey Road Studio, London,

    Facebook Leans on Local Creators to Grow Watch and Hit New Target Areas

    As Facebook leans into sports, non-scripted and select scripted properties, it’s increasingly looking to an army of creators rather than A-list celebrities to tap into all three target areas as they grow businesses on the Watch platform. Facebook’s newly appointed head of entertainment media partnerships for Northern Europe Anna Higgs tells Variety, “The Watch strategy [...]

  • Apple-Coronavirus

    Apple Warns of Sales Shortfall for March 2020 Quarter, Blaming Coronavirus Outbreak

    Apple said the spread of the coronavirus in China has disrupted iPhone manufacturing and driven down sales in the country. As a result, the tech giant said it now expects to undershoot the revenue guidance it previously provided, of between $63.0 billion and $67.0 billion its fiscal 2020 second quarter (which ends March 28). “Work [...]

  • Jeff Bezos

    Jeff Bezos Forms $10 Billion Fund to Fight Climate Change

    Multi-billionaire Jeff Bezos, the world’s wealthiest person, announced a $10 billion fund to invest in projects that will combat the alarming trend of climate change. The Amazon founder and CEO announced the formation of the Bezos Earth Fund in an Instagram post Monday (Feb. 17).⁣⁣⁣ According to Bezos, the fund will begin issuing grants this [...]

  • Jake Paul

    YouTuber Jake Paul Launches Entrepreneur How-To Platform, Financial Freedom Movement

    YouTuber Jake Paul wants you to be financially free, for $19.99 a month.  At a rally on Saturday, the content creator — along with influencer friends and around 50 teenage and tween-age fans, some chaperoned by parents — launched the Financial Freedom Movement (FFM) in partnership with GenZ Holdings Inc., a Los Angeles-based brand development [...]

More From Our Brands

Access exclusive content