Verizon buys stake in online video maker AwesomenessTV

Verizon Communications agreed to acquire a 24.5 percent stake in online video maker AwesomenessTV from DreamWorks Animation, furthering its foray into entertainment programming.

The deal values AwesomenessTV at $650 million, according to a statement. DreamWorks will remain the majority owner of AwesomenessTV with a 51 percent stake. Hearst owns the remainder of the video producer.

Verizon is expanding its entertainment offerings to lure more subscribers and draw advertisers through its AOL unit. Last year the mobile phone company introduced Go90, a free mobile video service with content aimed at teens and millennials.

Bloomberg News

This story was originally published April 6, 2016 at 2:16 PM with the headline "Verizon buys stake in online video maker AwesomenessTV."