Walt Disney (DIS) Close To Acquiring YouTube Network Maker Studios

NEW YORK (TheStreet) -- Walt Disney (DIS) is reportedly close to acquiring YouTube video network Maker Studios for $500 million.

Shares of Disney were falling 0.8% to $81.30 Tuesday.

News of the possible acquisition comes from a Re/code report that says a deal isn't guaranteed to happen. If the deal does happen, it would be the largest investment in a YouTube-based media network by a traditional media company.

Maker Studios claims it generates 5.5 billion views a month through YouTube and, to a lesser extent, other video platforms. The network works with some of the most popular content creators on YouTube including Felix "PewDiePie" Kjellberg, YouTube's current biggest star who's known for his video game commentary videos.

In late 2012 Time Warner's (TWX) venture arm led a $36 million venture round in Maker Studios.

Must read: Warren Buffett's 10 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates DISNEY (WALT) CO as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate DISNEY (WALT) CO (DIS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."

If you liked this article you might like

Market Selloff Survival Strategies: Cramer's 'Mad Money' Recap (Thurs 9/21/17)

Royal Caribbean Cruise Set to Sail Through Caribbean Hurricane Disasters?

Microsoft's New Xbox One X Shows It's Done Trying to Please Everyone

'The Handmaid's Tale' Emmy Win Is Really Big for Netflix

Stocks Dad Would Have Loved, And Why He Was Right