The Walt Disney Company has bought Maker Studios in a $500 million deal, TechCrunch reported.

In addition to the price tag, the leading network of online video content on YouTube stands to receive as much as $450 million in performance-linked earn-outs pending the meeting of strong performance targets. The acquisition paves the media conglomerate's entry in the world of online video and represents the biggest purchase of a YouTube multichannel network and could signal even more consolidation in the area, the report said.

In the statement, The Walt Disney Company Chairman and Chief Executive Officer Robert A. Iger said, "Short-form online video is growing at an astonishing pace and with Maker Studios, Disney will now be at the center of this dynamic industry with an unmatched combination of advanced technology and programming expertise and capabilities."

The deal is set to be closed in the third fiscal quarter of Disney. The team at Maker Studios will be reporting to Jay Rasulo, the Chief Financial Officer of Disney. Maker Studios will continue to be based in Culver City, California and will have operations in New York and London, the statement said.

Established by individual creators from YouTube who simply wanted to capitalize on their different audiences and skill sets to improve their viewer base, Maker has burgeoned into something so much more. It is now the leading online video network for Millenials because of its over 55,000 channels, 380 million subscribers and 5.5 billion monthly views, a statement about the acquisition said.

Maker is backed by various investors, securing $66 million in more than three funding rounds. Its investors include Canal+, Astro, SingTel Innov8, Lakestar, Northgate Capital, Time Warner Ventures, Upfront Ventures, Greycroft Partners, Maker executive chairman Ynon Kreiz, Downey Ventures, Elisabeth Murdoch, FUEL: M+C, Daher Capital, and producer Jon Landau, the report said.