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YouTube Network Fullscreen Acquires Digital Studio Rooster Teeth

Fullscreen, one of the largest YouTube multichannel networks, has acquired pioneering digital studio Rooster Teeth.

Terms of the deal were not disclosed. Fullscreen — which itself was recently acquired by Otter Media, a joint venture of AT&T and the Chernin Group — said it will expand Rooster Teeth’s large audience and content production capabilities, both live and animated.

“Rooster Teeth is one of the strongest and most authentic media brands in the world amongst 18- to 34-year-old, male-skewing audiences,” George Strompolos, Fullscreen CEO and founder, said in a statement. “The combination of its massive reach, unique creative voice and insanely powerful community makes it a perfect match for Fullscreen.”

Rooster Teeth was formed in 2003 by CEO Matt Hullum and creative director Burnie Burns. The company has 16 million subscribers across YouTube, with its longest-running and popular series is “Red vs. Blue.” Rooster Teeth is also producing a feature-length film, “Lazer Team,” funded by $2.5 million in contributions via Indiegogo; has developed live-action shorts, serial comedies, animation, podcasts and gameplay videos; and runs a podcast network

Rooster Teeth’s business encompasses sales of music, merchandise and videogames as well as live events, including Rooster Teeth Expo (RTX), an annual gaming and Internet culture convention that attracted more than 30,000 attendees this July in Austin, Texas.

Rooster Teeth will continue operating as a subsidiary in Austin, with Hullum remaining as CEO and Burns as creative director.

“With Fullscreen, we look forward to continuing that tradition in even bigger and better ways,” Burns said in a statement. “Matt and I are excited about the opportunities this alliance will present for our creators and all the amazing content it will empower them to produce for our audience.”

Fullscreen is majority-owned by Otter Media, the company AT&T and Chernin Group established this spring pledging to put up to $500 million toward acquiring, investing in and launching over-the-top video services.

In the deal with Fullscreen, Rooster Teeth was advised by McCafferty & Co.

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