In a deal, which announced on Wednesday, Verizon Agreed to buy the 24.5% stake in Online Video Startup, AwesomenessTV. The AwesomenessTV is an Online Video Startup, which uploads the videos which target the emotions of the Youth. The AwesomenessTV was acquired by DreamWorks Animation in 2013 and is the biggest shareholder of the startup. With 51%, DreamWorks Animation is the largest Shareholder, followed by Hearst Corp with 24.5% and now the Verizon, with 24.5% stake. The Verizon is planning to launch the Mobile Video brand with the help of AwesomenessTV.
The deal between two companies has raised the market valuation of AwesomenessTV to nearly $650 million. The Verizon is planning to create the “First-of-its-kind” Premium Short-form Mobile video service. The AwesomenessTV has the popular YouTube channel, where they upload short videos, which are liked by Young generation.
The AwesomenessTv had almost 40% viewership from smartphones, four years ago. Now, it has increased up to 80%. The AwesomenessTV already had a deal with Verizon to provide exclusive rights to their short videos for the Carrier’s Go90 smartphone app. The Verizon and AwesomenessTV will create a new premium brand in the US, which will build and distribute the Premium video content to users. The Verizon will have the exclusive rights for the United States and AwesomenessTV can sell the content rights in other countries.