The deal between Fullscreen and Otter Media, a joint venture of AT&T and Chernin, would put the valuation of the company at $200 million to $300 million, said the source, who was not authorized to comment on the transaction.
Founded in 2011, Culver City-based Fullscreen, which has helped boost the popularity of many YouTube stars, has built more than 15,000 channels with 200 million subscribers and gets about 2.5 billion views a month. Chernin is a media group run by the former Fox President Peter Chernin.
This year, Walt Disney Co. acquired YouTube network Maker Studios in a deal worth up to $950 million. The massive buyout has been heralded since the spring as a major milestone for Los Angeles’ budding tech community, and rumors of Fullscreen being the next to sell had picked up in recent weeks.
Staff writer Ryan Faughnder contributed to this report.