Fullscreen, founded in January 2011, is a major YouTube partner, working with more than 50,000 content creators to engage subscribers and monetise online video content. AT&T said the deal will help strengthen its ability to reach young people. The acquisition is expected to close within the next month, subject to regulatory approval.
WPP, which had invested in Fullscreen in a round of Series A funding led by the Chernin Group in 2013, also will continue as a strategic shareholder in the company. Chernin is already an investor in Fullscreen and founder Peter Chernin sits on its board.
Fullscreen reportedly held talks with Yahoo, AOL and other potential buyers in recent months. The company was thought to be valued at around USD 250 million in the takeover talks.