Otter Media
Acquired2 known investors
American digital media holding company formed by AT&T and The Chernin Group, owner of Crunchyroll, Rooster Teeth and Fullscreen.
Also known as Otter Media · Otter Media Holdings, LLC
Investors · 2
Also in the syndicate · 1
Company profile
researched Aug 2026Otter Media Holdings, LLC was an American digital media company headquartered in Santa Monica, California. It was established in April 2014 as a 50:50 joint venture between AT&T and The Chernin Group to offer over-the-top (OTT) video services, initially serving as a holding company for the anime streaming service Crunchyroll, in which The Chernin Group had invested in 2013. Its activities spanned OTT services, digital networks, film production and distribution, online television programming and events.
The portfolio assembled under Otter Media included Rooster Teeth, Fullscreen, McBeard, Reelio, Machinima, Ellation (parent of Crunchyroll, Crunchyroll EMEA, VRV, Crunchyroll Expo, the Crunchyroll Anime Awards and Crunchyroll Games), the Hello Sunshine joint venture with Reese Witherspoon, and a stake in Gunpowder & Sky, a joint venture with Floris Bauer. Leadership included CEO Tony Goncalves, COO Andy Forssell and CSO Sean Kisker. The company reported operating income of $500 million in 2014 and had approximately 1,400 employees in 2018.
AT&T acquired The Chernin Group's remaining stake in 2018, after which Otter Media was placed under WarnerMedia. Following a March 2019 move into Warner Bros. Entertainment, Otter Media was folded into the WarnerMedia Entertainment division on May 31, 2019, and ceased to exist as a separate entity.
Founding story
The company was created in April 2014 by AT&T and The Chernin Group as an equally owned joint venture intended to build over-the-top video businesses, with Crunchyroll — in which The Chernin Group had invested in 2013 — as its founding asset.
Business model
Otter Media operated as a holding company, acquiring and building majority or joint-venture stakes in digital media and streaming businesses, and organizing them into consumer-facing divisions (direct-to-consumer subscription streaming through Ellation's Crunchyroll and VRV) and services divisions (Fullscreen's creator services, influencer marketing, branded content and channel management).
Revenue was generated across subscription over-the-top streaming services, advertising and branded content, influencer marketing and creator services, content production and distribution, ecommerce and fan platforms (Fullscreen Direct), and live events such as Crunchyroll Expo.
Traction
Otter Media reported $500 million in operating income for 2014 and employed about 1,400 people in 2018. Its Crunchyroll asset was later sold by WarnerMedia to Sony's Funimation Global Group for $1.175 billion, and its Hello Sunshine joint venture was sold for $900 million to a Blackstone-backed media company.
Latest developments
In December 2018 Otter Media announced a reorganization that laid off roughly 10% of its approximately 1,400 full-time and contracted staff (about 140 people), folded direct-to-consumer brands including Rooster Teeth into the Ellation division, moved Machinima under Otter Media, shuttered Fullscreen Direct, and split Fullscreen into Creator Services, Brand Studio and Brand Services divisions reporting to COO Andy Forssell. In early February 2019 Machinima ceased its remaining operations with reports of 81 layoffs. On March 4, 2019 Otter Media was placed within Warner Bros. Entertainment, and on May 31, 2019 it was folded into WarnerMedia Entertainment.
▸Full profile — market position, technology, go-to-market, geography, history, risks & controversies
Market position
Otter Media was AT&T's principal digital-media and OTT holding vehicle, controlling niche subscription streaming services (Crunchyroll, VRV), digital-native content studios (Rooster Teeth, Machinima) and one of the largest multi-channel-network-derived influencer marketing businesses (Fullscreen), before being consolidated into WarnerMedia's streaming operations.
Technology
Over-the-top streaming platforms and digital video networks, including the Crunchyroll anime service and the VRV bundled streaming platform, plus creator channel-management and direct-to-consumer ecommerce platforms.
Go-to-market
Consumers of anime, gaming, and fandom-oriented video content via subscription streaming services, alongside brands and advertisers purchasing influencer marketing, branded content and channel-management services, and artists using direct-to-consumer commerce and fan-club tools.
Geography
Headquartered in Santa Monica, California, with U.S. operations including Burbank, California, and international production facilities in Tokyo, Japan through Ellation Studios; Crunchyroll EMEA extended reach into Europe.
History
AT&T and The Chernin Group established Otter Media in April 2014 as a 50:50 joint venture to offer OTT services, with the partners investing $500 million. In January 2016 Otter Media invested in Van Toffler and Floris Bauer's Gunpowder & Sky, which later merged with FilmBuff. In November 2016 it formed Hello Sunshine with Reese Witherspoon, a company later sold to a Blackstone-backed media company. In January 2018 Otter Media bought the remaining stakes in Ellation, owner of VRV and Crunchyroll, integrating it as its Consumer Division. In June 2018 Recode reported AT&T was close to buying out Chernin's stake, and on August 7, 2018 AT&T announced the acquisition of that stake for an undisclosed amount reported to be around $1 billion. In August 2018 Ellation launched Ellation Studios in Burbank and Tokyo to produce Crunchyroll and VRV originals. In December 2018 Otter announced a restructuring that cut about 10% of staff and moved Machinima under Otter Media. On March 4, 2019 Otter Media became part of Warner Bros. Entertainment, and on May 31, 2019 it was folded into WarnerMedia Entertainment. Crunchyroll was later sold by WarnerMedia to Sony's Funimation Global Group for $1.175 billion, in a deal announced December 9, 2020 and completed August 9, 2021.
Risks & controversies
The company was subject to repeated restructuring under AT&T ownership following the $80 billion Time Warner acquisition, including a December 2018 layoff of about 10% of staff, the closure of Fullscreen Direct, and the February 2019 shutdown of Machinima with roughly 81 layoffs after its YouTube archive was removed. Otter Media itself ceased to operate as an independent unit when it was folded into WarnerMedia Entertainment in May 2019.
Compiled by commissioned research from 3 cited public sources — announcements, filings, and press listed under research sources below.
Key figures
latest reportedCompany-reported or press-reported figures, each dated to when it was claimed — not independently audited.
Timeline · 11
launches, deals, and filingsSony-owned Funimation Global Group announced the acquisition of Crunchyroll from WarnerMedia for $1.175 billion; the deal closed on August 9, 2021.
$1.2B source ↗
Otter Media was dissolved as a standalone unit and folded into the WarnerMedia Entertainment division; CEO Tony Goncalves was given oversight of streaming service development.
Following a reorganization of WarnerMedia's businesses, Otter Media became part of Warner Bros. Entertainment.
Otter Media's Machinima ceased its remaining operations and laid off most of its staff, with reports of 81 employees affected; GM Russell Arons remained to assist with transitional activities.
Otter Media announced a reorganization cutting roughly 140 of about 1,400 full-time and contracted staff. Direct-to-consumer brands including Rooster Teeth were folded into the Ellation division alongside Crunchyroll and VRV; Machinima was re-organized under Otter Media; Fullscreen Direct was shut down; and Fullscreen was split into Creator Services, Brand Studio and Brand Services divisions reporting to COO Andy Forssell.
Otter Media's Ellation formed Ellation Studios, a production studio with facilities in the U.S. and Japan, to produce original content for Crunchyroll and VRV.
AT&T announced it had bought out The Chernin Group's stake in Otter Media for an undisclosed amount believed to be around $1 billion, giving AT&T full ownership; Otter Media was subsumed into AT&T's WarnerMedia division.
Otter Media acquired the remaining ownership of Ellation, owner of VRV and Crunchyroll, and integrated it as Otter Media's Consumer Division.
Otter Media and actress Reese Witherspoon created Hello Sunshine, a joint venture focused on female-driven stories across film, TV and digital platforms. The company was later sold for $900 million to a media company backed by the Blackstone Group.
Otter Media backed Van Toffler and Floris Bauer's digital content company Gunpowder & Sky, which later merged with FilmBuff.
Otter Media was established in April 2014 as an equally owned joint venture between AT&T and The Chernin Group to offer over-the-top video services; the partners invested $500 million.
$500M source ↗
Dated company events from announcements, filings, and press; legal rows summarize public dockets and regulator releases.
▸Research sources · 3
primary sources listed
- Otter Media - Wikipediaen.wikipedia.org · web
3 public sources were cited for this profile; the first-party ones are listed here.
Frequently asked questions
- What does Otter Media do?
- American digital media holding company formed by AT&T and The Chernin Group, owner of Crunchyroll, Rooster Teeth and Fullscreen.
- Who are Otter Media's investors?
- Otter Media's investors include The Chernin Group (TCG Crypto).