Verizon Buys Into DreamWorks’ New Media Venture

Verizon Communications Inc. has acquired a stake in multi-platform media company AwesomenessTV, it was announced Wednesday. Verizon joins DreamWorks Animation SKG Inc. and Hearst Corp. in a joint ownership of the media company, based in Los Angeles. DreamWorks Animation, in Glendale, remains the majority owner with a 51 percent stake. Hearst and Verizon each own 24.5 percent. AwesomenessTV produces content aimed at teenagers. The network’s lineup includes short form videos on fashion, pop culture and celebrities as well as comedy sketches, reality programming and dramas. Chief Executive Brian Robbins said the addition of Verizon to the ownership group brings insight and resources. “Our goal is to be the media company of the future, where content and distribution go hand in hand – we are now one giant step closer to that future,” Robbins said in a prepared statement. In addition to the investment, Verizon will fund a premium short-form mobile video service with exclusive distribution over its network in the United States. AwesomenessTV retains the right to sell content, created both in-house and by Hollywood studios, in the rest of the world. DreamWorks Animation Chief Executive Jeffrey Katzenberg called the new branded service a transformational step in the mobile video landscape. “This agreement is clearly impactful for AwesomenessTV and even more exciting is the expansion of our relationship with Verizon, one of the world’s most powerful marketers and content distributors, and their commitment to explore with us this incredible opportunity,” Katzenberg said in a prepared statement. Last year, DreamWorks and AwesomenessTV agreed to create 200 hours of content for distribution by Verizon. DreamWorks Animation acquired AwesomenessTV in 2013 for $33 million, and its value has increased nearly 20 fold since. DreamWorks sold off a 24.5 percent stake to Hearst Corp. in 2014 for $81 million. Reuters reported Verizon paid about $160 million for its stake. Shares in DreamWorks Animation closed up 82 cents, or 3.4 percent, to $25.21 on the Nasdaq.