Otter Media, a joint venture between AT&T and media group Chernin, is in advanced talks to buy a controlling stake in YouTube video producer Fullscreen, people familiar with the matter told the Wall Street Journal. Fullscreen is a so-called multichannel network, which recruits popular YouTube video makers and helps them sell ads for part of the ad revenues. The deal is likely to value Fullscreen at about USD 250 million and could be agreed as soon as this week, one person said. Fullscreen reportedly held talks with Yahoo, AOL and other potential buyers in recent months. The expected valuation is around half the price initially discussed, due to skepticism about the USD 500 million Disney paid for one of Fullscreen's larger rivals, Maker Studios, and the difficulty with making a profit in a business where Google keeps 45 percent of all ad sales. Chernin is already an investor in Fullscreen and founder Peter Chernin sits on its board.
