SOURCE: Semaphore Tax and Business Solutions

Semaphore Tax and Business Solutions

May 31, 2013 09:00 ET

Philip DeFranco Evolves, Prepares Second Act as DeFranco Creative Is Acquired by Discovery Communications' Revision3

Semaphore Tax and Business Solutions, Business Advisor to DeFranco Creative, Bullish on Opportunities for YouTube Entertainers as Major Media Companies Seek Stronger Footholds in the Highly Creative User-Generated Content Space

IRVINE, CA--(Marketwired - May 31, 2013) - Semaphore Tax and Business Solutions, a leading tax and accounting firm with specialization in YouTube entertainers, announced today that it provided business advisory services to DeFranco Creative in its sale to Revision3. Financial terms were not disclosed.

As part of the acquisition, DeFranco, the wildly popular YouTube host and producer, will himself become part of the Revision3 programming leadership team as a Senior Vice President of Phil DeFranco Networks and Merchandise. Discovery Communications just finished celebrating the one-year anniversary of its acquisition of Revision3 with record audience and stream growth and demonstrates the company's ability to attract and develop the Internet's top talent.

"The sale of DeFranco Creative to Revision3 results in tremendous opportunities for the entire DeFranco team, allowing them access to increased distribution opportunities and providing a bridge for multiple entertainment platforms," said Michael Bienstock of Semaphore Tax and Business Solutions, who provided business advisory services to DeFranco Creative. "Traditional media companies are increasingly looking at YouTube superstars like Phil as they realize the ever-evolving potential of this industry."

In the last year alone, the YouTube industry has seen significant "Big Media" interest including Google's investment in Machinima, Time Warner's support of Maker Studios, and DreamWorks recent acquisition of Awesomeness TV. "Major media companies are recognizing the charisma and authenticity of talent that was born on YouTube as online personalities continue to gain tremendous, highly desirable audiences," said Bienstock. "Mainstream media will continue looking to acquire and develop strategic relationships with what were essentially hobbyists who have launched careers as a result of their unique talents and appeal to the current generation of media consumers."

"I'm ready to reinvent television and reimagine online networks. Today is going to be looked back upon as a new day for online media," said DeFranco. "Semaphore has been a key asset in helping me navigate the business opportunities that have evolved out of what started as my hobby. Semaphore's involvement with my company has allowed me to keep my focus on the creative end so I can keep doing what I love doing -- creating content."

The Philip DeFranco Show, launched in 2006, is a daily source of news and commentary about the world for more than 2.5 million subscribers, with DeFranco tackling everything from the latest buzz to new tech gadgets. Last year, DeFranco debuted SourceFed, a new channel focused on breaking pop culture news in conjunction with YouTube's original channel initiative.

About Semaphore Tax and Business Solutions, Inc.
Based in Irvine, California, Semaphore Tax and Business Solutions provides bookkeeping, business management, tax advisory services and accounting support to "Tubers" with more than 100,000 subscribers looking to take their business to the next level. They currently work with many rising stars on YouTube, including several of the top talent according to Vidstatsx.com. Semaphore also provides comprehensive tax, business, and consulting services to business owners and self-employed professionals.

About Revision3
Revision3 is the television network for the Internet generation, creating and producing original episodic community-driven programs. The viewing audience of 250 million monthly views and 30 million unique viewers, is made up of hyper-connected, passionate, committed fans who want to watch shows about technology, science, modern culture, video games, entertainment and comedy, that entertain and educate. Revision3's programs can be found everywhere from Revision3.com to a wide range of platforms, including iTunes, YouTube, Roku, AOL, TiVo, and many others. Shows can be watched on any device, from a cell phone to an iPad to a computer or a TV. Revision3 has attracted a wide-range of top advertisers including Ford, Sony, Netflix, Samsung, Microsoft, IBM, HP, Southern Comfort, Virgin America and Verizon.

About Discovery Communications
Discovery Communications is the world's #1 nonfiction media company reaching more than 1.8 billion cumulative subscribers in 218 countries and territories. Discovery is dedicated to satisfying curiosity through 155 worldwide television networks, led by Discovery Channel, TLC, Animal Planet, Science and Investigation Discovery, as well as U.S. joint venture networks OWN: Oprah Winfrey Network, The Hub and 3net, the first 24-hour 3D network. Discovery also is a leading provider of educational products and services to schools and owns and operates a diversified portfolio of digital media services, including Revision3. For more information, please visit www.discoverycommunications.com

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