The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe have recently drawn their investor’s attention to recent developments that if accurate would see Time Warner combine with both Yahoo Inc and Relativity Media LLC as parties expressing interest in acquiring Fullscreen Inc, which operates a number of channels on its popular network hosted on the Google Inc owned You Tube streaming site.

With backing from both Peter Chernin and Comcast Ventures, Fullscreen Inc is among the latest in a line of online video companies that have attracted the interest of larger more traditional media companies due to streaming channels attracting and holding larger figures for younger audiences, a demographic that traditional TV networks and advertisers find difficult to reach as online providers continue to flourish. The interest in companies like Fullscreen is well documented with just this year alone Walt Disney Co, DreamWorks Animation SKG Inc and the Time Warner owned Warner Bros all having made acquisitions of online channel services, most notably the $500 million, with an additional $450 million in performance bonuses buyout of Makers Studios by Disney.

“The youth market is a vital demographic for broadcasters and their advertising interests and the writing was on the wall for a deal of this nature by Time Warner after Disney, perhaps the most heavily youth focused channel showed that it saw value in spending a near total of $1 billion on acquiring Makers Studios to retain dominance in this arena, by way of comparison the similar sized Awesomeness TV by SKG back in May of last year attracted a value of only around $150 million,” said a Senior Analyst and Researcher at The Avanti Group.

Figures released by Fullscreen in April of this year show that the company has 380 million subscribers, accounting for over 3 billion views per month and generating between $50 million and $70 million worth of revenue in 2013, shared with the Google Inc owned You Tube channels also carried in its network offerings.

“Of course at this stage nothing regarding this possible deal is confirmed, but it is clear that an acquisition of this kind is required by Time Warner if it wants to remain viable to the youth market and it most certainly wants to do that, because the cost of not doing so could easily outweigh any reasonable price that an acquisition could attract in regard to advertising revenues that stand to be missed out on,” concluded the Senior Analyst and Researcher at The Avanti Group.

The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.