The Walt Disney Co. has agreed to purchase Maker Studios for $500 million in an attempt to draw more teens to the company, according to a report by Reuters.

The deal, once finalized, will make Disney a major online video distributor across the globe.

The price could increase to $950 million if Maker Studios, one of YouTube's largest networks, reaches certain performance milestones, according to Disney.

The deal will likely be finalized during Disney's third fiscal quarter, according to Reuters.

"This gives a presence online to reach the millennial group that is increasingly getting its video online," said Kevin Mayer, Disney executive vice president for corporate strategy, according to Reuters. "And it gives us a lot of data to help promote our other businesses to them."

Maker was founded in 2009, and has since become one of the largest video production networks on Google Inc's YouTube.

The company's producers target the millennial generation, which is known for its "high appetite" for watching videos online, according to Reuters.

Maker produces and distributes videos to over 380 million subscribers around the world across more than 55,000 channels. Its videos gain 5.5 billion views collectively every month, according to Reuters.

The company is backed by investors like Time Warner Investments, Upfront Ventures and Greycroft Partners, and is partners with PewDiePie, which is the online persona of video gamer Felix Kjellberg.

 Kjellberg is YouTube's most-subscribed user with over 25 million subscribers currently.

"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," Disney CEO Bob Iger said in a statement, according to Reuters.

See Now: OnePlus 6: How Different Will It Be From OnePlus 5?