YouTube Network Giant Fullscreen Broadens Audience and Portfolio with the Acquisition of Online Video Producer Rooster Teeth Productions
One of YouTube’s biggest networks just got bigger. At the close of 2014, Fullscreen completed its purchase of the online production studio, Rooster Teeth. The acquisition provides Fullscreen with another avenue to reach the highly coveted and rapidly expanding bracket of 18-34 year olds who watch videos online. According to Statista, the 18-34 year old age group has consistently watched more digital video per day than any other age group since 2012.
A leader in online comedy and gaming-related content production, Rooster Teeth draws in a massive audience of 18-34 year old males, and holds over 15 million subscribers across its channels.
Beyond gaining the content creator’s programming, Fullscreen is actually gaining the capability to become the content creator with the accession of Rooster Teeth’s full-scale production studio based in Austin. Fullscreen is a provider of primarily management-based services for content creators and brands, but now has in-house production capabilities and the potential to create original content.
For Rooster Teeth, this acquisition means more support for existing projects, like their 11 year-running animated series “Red vs Blue,” their forthcoming live action feature film “Lazer Team,” and their Austin-based gaming conference, RTX (which drew in over 30,000 attendees in 2014). Fullscreen has reported they will also invest a multimillion-dollar sum in the expansion of Rooster Teeth’s new content, merchandise, and live events. Aside from financial support, Rooster Teeth also benefits from the acquisition in the form of added advertiser relationships from Fullscreen’s powerhouse AdSales team.
Rooster Teeth joins Fullscreen’s portfolio of top channels including Electronic Division, Fullscreen Artist Mix, NBC Universal, FOX, and Fremantle Media. Although Fullscreen’s network of content is vast, the attachment of Rooster Teeth provides more than just added content. A large portion of Rooster Teeth’s content falls within a niche genre, a genre that is currently underserved in the online video market: gaming-related content. Viewership of other gaming-related content, such as eSports, is estimated to have surpassed 70 million in 2013, doubling year-over-year, according to SuperData Research and Newzoo. Rooster Teeth was one of the first, and still remains one of the top, providers of video content in this specialized genre.
The scarcity value of content providers operating within the gaming-related space has already piqued the interest of powerful media companies, like Amazon and Google, who competed over the purchase of the live video-game streaming site, Twitch, in August of 2014. Amazon ultimately won the acquisition for upwards of $1 billion, cash. That same month, Legendary Entertainment acquired Geek & Sundry, a digital network providing “geek-themed” videos, such as comic book and video game-related content. Fullscreen is the latest contender to bridge into gaming-related content, but as viewership within this genre continues to soar, many more players are expected to enter the game.
For further reading please view the article on Reuters about this transaction.
McCafferty & Company acted as sole sell-side advisor to Rooster Teeth on the deal.