Burbank, California – The Walt Disney Company (NYSE:DIS) has agreed to acquire YouTube video content network Maker Studios.

Maker Studios shareholders will receive total consideration of US$500 million, and a performance-linked earn-out of up to US$450 million if the strong performance targets are met.

With more than 55,000 channels, 380 million subscribers and 5.5 billion views per month on YouTube, Maker has established itself as the top online video network for Millennials.

By acquiring Maker Studios, Disney will gain advanced technology and business intelligence capability regarding consumers’ discovery and interaction with short-form online videos, including Disney content.

“Short-form online video is growing at an astonishing pace and with Maker Studios, Disney will now be at the centre of this dynamic industry with an unmatched combination of advanced technology and programming expertise and capabilities,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company.