You can now read 5 articles in a month for free on Read as much as you want anywhere and anytime for just 99¢.

DreamWorks buys YouTube network

GLENDALE, Calif. — DreamWorks Animation SKG Inc. is buying AwesomenessTV, a YouTube teen network, for about $33 million in cash as it looks to tap into the popularity of online content.

DreamWorks said Wednesday that AwesomenessTV founder and chief executive Brian Robbins will continue to direct growth at that company while also developing a DreamWorks branded digital family channel.

Continue reading below

The deal includes the possibility of additional cash payments of up to $117 million if certain earnings targets are reached in 2014 and 2015.

The deal is expected to close this month.

AwesomenessTV features talk shows, scripted and reality programs, and sketch comedy. The company has released a movie with AMC Theaters and expects to have a television show on Nickelodeon.

Its network of more than 57,000 YouTube channels has 14.4 million subscribers. The more than 1 million videos on the network have been seen 809 million times.

Benjamin Mogil, an analyst with investment bank Stifel, Nicolaus & Co., said in a research note that the purchase was ‘‘strategically prudent’’ and likely ends the possibility that DreamWorks will buy a pay TV channel as an outlet for the animated content from its franchises such as ‘‘Kung Fu Panda’’ and ‘‘Madagascar.’’ He said the acquisition will likely hurt DreamWorks’ earnings per share in the short term.

Rachel Egan, a spokeswoman for ad-buying network TubeMogul, said the purchase ‘‘seems like a broad recognition by DreamWorks that their younger audience — like the rest of us — are increasingly streaming content online, on mobile devices and in social media.’’

The announcement came a day after DreamWorks announced quarterly earnings that beat analysts’ expectations on both revenue and profit, although both showed a decline.

Shares of DreamWorks, which is based in Glendale, Calif., closed at $20.69 on Wednesday, up $1.41, or 7.3 percent.

Loading comments...
Want each day's news headlines delivered fresh to your
inbox every morning? Just connect with us
in one of the following ways:
Please enter a valid email will never post anything without asking.
Privacy Policy
Subscriber Log In

You have reached the limit of 5 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of
Marketing image of