Disney has signed a deal to buy YouTube network Maker Studios for up to $950m.
Shareholders at Maker Studios will receive $500m and a performance-linked payment of up to $450m if targets are met.
Maker Studios has more than 55,000 channels, 380m subscribers and 5.5bn views per month on YouTube, with some of its most popular channels being Polaris, Cartoonium and The Platform.
“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 Disney chairman and CEO Bob Iger.
Maker Studios executive chairman and CEO Ynon Kreiz added: “Disney is synonymous with the best entertainment and is the ideal partner for us, strengthening our position as the leading player in online video."
Maker Studios will remain in Culver City, California, with operations in New York and London.