(Adds response from Relativity)
April 14 YouTube network Maker Studios said on
Monday a majority of shareholders had approved its purchase by
Walt Disney Co, making clear it was not for sale to
Relativity Media, which made a surprise bid of up to $1.1
billion for the company.
Disney agreed to buy Maker on March 24 for $500 million in
cash, a price that could rise to $950 million if Maker hits
certain performance milestones.
"The agreement has been approved by Maker Studios' Board of
Directors and the majority of its shareholders and is expected
to close in the next few weeks, subject to regulatory approval,"
Maker said in a statement on Monday.
Maker, founded in 2009, is one of the largest video
production networks on Google Inc's YouTube.
Maker targets the millennial generation, defined roughly as ages
14 to 34 and known for its appetite for online video.
Relativity, in a statement issued on Monday afternoon, said
it had made a "compelling offer" that would have benefited
Maker, its employees and talent.
"We will continue to aggressively explore future
opportunities that align with our strategy to accelerate digital
content creation and distribution," Relativity said.
(Reporting by Lisa Richwine in Los Angeles and Supriya Kurane
in Bangalore; Editing by Joyjeet Das, Ronald Grover, Jonathan
Oatis and Jan Paschal)