Media giants see digital video startups as key to teen market

Disney's purchase of teen-focused Maker Studios for $500 million in March has set off an arms race for major media companies, which are looking to acquire other digital-video shops that are popular with teens, especially on YouTube. Fullscreen, which produces YouTube video, is a top acquisition target and is believed to have received interest from AOL and Yahoo. "Consumer behavior is turning to short-form video" that major media companies "don't have expertise in producing," said MoffettNathanson Research's Michael Nathanson.

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