updated 04:13 pm EDT, Tue April 22, 2014
Chernin dumps $500 million into partnership's unknown project
AT&T is partnering with The Chernin Group, with the latter pouring $500 million into an effort to distribute Internet-based video services. What exactly AT&T and Chernin will produce as a result isn't clear, but premium services like Netflix are suspected. The terms of the deal have not yet been announced. Chernin's group focuses on developing premium content for film and television, making investments in technology and media companies in the US, and capitalizing on strategic business opportunities in emerging markets.
"AT&T's massive reach on those platforms across mobile and broadband and their commitment to the online video space make them the perfect fit for this venture with us," Peter Chernin said of the deal. "I think there is a limitless potential playing field."
The Chernin Group's assets include Chernin Entertainment, a majority stake in CA Media, and several strategic investments in US-based technology and media companies including Crunchyroll, Pandora, Fullscreen, Tumblr, and Flipboard.
"We intended to put a significant amount of money into making a significant play in this space," said John Stankey, AT&T's chief strategy officer. "We are very interested in gaining scale in the content space"