Discovery’s Revision3 buys YouTube channel operator

Discovery-owned online video operator Revision3 has acquired a DeFranco Creative, which operates aportfolio of online YouTube networks, and handed its founder a senior management position.

The deal sees Revision3 pay an undisclosed amount for affiliate DeFranco, which operates channels including The Vloggity and SourceFed and produces shows such as The Philip DeFranco Show (pictured), which has 2.5 million subscribers. The overall business averages more than 50 million monthly views and also includes a merchandise arm.

The deal is latest example of an established media company acquiring an emerging YouTube-focused channel operator. Last month, DreamWorks Animation spent US$33 million on AwesomenessTV, which comprises 55,000 YouTube channels and about 14 million subscribers. That deal could eventually rise to US$117 million, depending on performance.

DeFranco’s owner, internet personality Philip DeFranco, has been named senior VP, Philip DeFranco Networks, and will join Revision3’s management team.

“We’ve had a blast working with Phil and his team as an affiliate, and we can’t wait to take the relationship way beyond 11,” said Jim Louderback, CEO of Revision3.

“Phil knows better than anyone working the web today how to delight audiences, build passionate fanbases and launch new franchises. By bringing Phil and DeFranco Creative officially into the fold we are adding a true pioneer in online video, a magnetic personality, a real business focus and a top-notch creative team to Revision3.”

DeFranco added: “I am so excited to be a part of the team because they’re the one group that understands how to add value while not taking away from their content creators. At the end of the day, we still have the same main goals: make awesome content, work with amazing people, monetize it, and repeat. This new relationship will provide the ability to do all of that better and build a network focused on quality and authenticity.”

Discovery acquired Revision3 a year ago, and claims the firm’s online audience has grown by 175% and video streams have tripled since. Its channels currently get around 250 million monthly views, with 30 million uniques.