NEW YORK (TheStreet) -- Verizon Communications (VZ) - Get Report  announced today that it agreed to buy a 24.5% stake in Awesomeness TV from DreamWorks Animation (DWA), which acquired the company in 2013.

Under the deal that values AwesomenessTV at around $650 million, DreamWorks will continue to be the company's majority stakeholder with a 51% stake, while Hearst Corp. will own the remaining 24.5% of the online-video maker.

"In addition to delivering compelling scripted and non-scripted series with high production values, AwesomenessTV has demonstrated an ability to zero in on programming that Gen Z and millennials want to watch," said Marni Walde, executive VP and president of Verizon's product and new business innovation.

Verizon also noted that it will work with AwesomenessTV to create a short-form mobile video service, which will launch as part of the go90 offering. 

Shares are declining 0.22% to $53.40 on Wednesday.

Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of A+.

The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, notable return on equity, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: VZ

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