AT&T buys Otter Media, carrying on with M&A strategy despite DOJ challenge

  • AT&T already owned part of Otter Media and its video assets.
  • AT&T launched its media- and advertising-heavy strategy after completing its long-fought merger with Time Warner.
Randall Stephenson
Katie Kramer | CNBC
Randall Stephenson

AT&T is buying Otter Media, the company announced Tuesday, confirming earlier reports and signalling the telecom giant is pushing ahead with its media-based M&A strategy despite continued challenges from the Justice Department.

AT&T already owned part of Otter Media and its video assets, but Recode reported in June it was looking to buy out the rest of the company at a valuation of around $1 billion. Terms of the deal were not disclosed Tuesday.

AT&T launched its media- and advertising-heavy strategy after completing its long-fought merger with Time Warner. CEO Randall Stephenson told CNBC after the deal closed that investors could expect "some smaller M&A in the coming weeks."