You are using an older browser version. Please use a supported version for the best MSN experience.

Maker Studios to Lay Off Staff After Disney Deal

6/18/2014

By Lucas Shaw
TheWrap

Maker Studios will lay off about 10 percent of its staff of 380, according to a spokeswoman for the large network of online video channels. Maker is making the staffing changes after its acquisition by the Walt Disney Co. in a deal worth $500 million (and as much as $950 million).

Staffing changes are commonplace after a deal that size, especially for a company with as much overhead as Maker. Maker's nearly 400 staffers span production, advertising sales, technology, merchandising and other sectors.

It shares many synergies with Disney, which can help the network's reach overseas and consumer products division while using Maker's beach head on YouTube to promote its own stars and movies.

Also read:  Maker Studios, Bertelsmann Invest in 'Fail Army' Network Jukin Media

Maker will still be hiring new employees in certain areas, and it did not specify where the current reductions will take place. Multi-channel networks such as Maker are often shuffling the decks as they invest more in some businesses and less in others.

Maker went through two rounds of layoffs last year — after Ynon Kreiz took over as CEO and after the company bought Blip. Other networks like Machinima and Big Frame also imposed some staffing changes to attract investors.

Maker never had a problem convincing investors of its value, raising more than $70 million before its deal with Disney.

Maker's relationship with emerging talent, outsized presence on YouTube and general expertise in the digital space lured Disney, which has imposed layoffs on a much larger scale in its interactive division.

The post Maker Studios to Lay Off Staff After Disney Deal appeared first on TheWrap.

Related stories from TheWrap:

Machinima Bets Big on 'Street Fighter' to Deliver the Franchise It Needs

Ryan Kavanaugh: I'm Not Interested in Fullscreen Content At All (Exclusive Video)

Hollywood Torrent: So About Relativity's $1.1 Billion Bid for Maker Studios... (Video)

AdChoices
AdChoices
AdChoices
image beaconimage beaconimage beacon