December 11, 2014 - 4:16 PM
GLENDALE, Calif. - Hearst Corp. is betting $81.3 million that Internet video network AwesomenessTV will live up to its name.
The investment announced Thursday gives Hearst a 25 per cent stake in AwesomenessTV, which DreamWorks Animation SKG Inc. acquired in May 2013.
The deal is the latest to underscore the growing popularity of Internet video services. DreamWorks bought AwesomenessTV at a price that could exceed $100 million if certain financial targets are reached. Just 19 months later, Awesomeness TV has now been valued at $325 million, based on Hearst's investment.
AwesomenessTV, which tailors its videos for teens, got its start with a small piece of the $100 million that Google Inc.'s YouTube doled out to about 100 programmers in 2012.
Hearst, which owns 29 traditional television stations, hopes to help AwesomenessTV expand its audience.
News from © The Associated Press, 2014