AT&T acquires full ownership of Otter Media
AT&T has acquired The Chernin Group's controlling interest in Otter Media, the joint venture between the two companies. Otter Media, a leading subscription, advertising and content company, comprises wholly-owned subsidiaries Ellation, an online subscription video service provider, with offerings under the Crunchyroll and VRV brands, as well as a full-service digital media company, Fullscreen, and its Rooster Teeth brand. Otter also has ownership stakes in global content studio Gunpowder & Sky, as well as Hello Sunshine, a media company founded by Reese Witherspoon. Otter Media will be a part of AT&T's WarnerMedia unit and Tony Goncalves, who was appointed Otter CEO earlier this year, will continue to run the company, reporting to WarnerMedia CEO, John Stankey. AT&T and The Chernin Group founded Otter Media in 2014 to invest and develop platforms and properties that capitalized on the growth of direct-to-consumer subscription and advertising models, as well as the rise of new digital media brands. AT&T's WarnerMedia unit was created after the close of the Time Warner acquisition in June 2018. The terms of the deal were not disclosed, but it did not have a material effect on AT&T's first-half 2018 results when the majority of the deal was funded. This acquisition does not change the company's plan to reduce its net-debt-to-adjusted-EBITDA ratio to the 2.5x range by the end of 2019 and to its historical range by the end of 2022.