Little Baby Bum features animated nursery rhymes and was founded by a couple based in London seven years ago, but they've now decided to cash-in on the platform, selling it for an undisclosed sum to a firm called Moonbug.
News of the sale has been confirmed by co-founder Derek Holder, although he refused to reveal how much the offer was worth.
Speaking to the BBC, he shared: "We were looking to take the brand to the next level.
"We saw who the team were behind Moonbug and what their plans would be, which would be to keep the core the same, but ... make episodes for TV around the world."
He explained that while the original owners had enjoyed a "fantastic run", it felt like the right time to hand the business over to new people.
Earlier this month, meanwhile, YouTube announced that its child-friendly app is set to get new parental controls.
The firm launched its YouTube Kids app in 2015 to make browsing online videos safer and simpler for kids, but it has subsequently received backlash for allowing unsuitable adverts to be shown on videos, as well as failing to filter out certain inappropriate content.
Under the new changes, parents are able to pick the specific videos, channels, or groups of channels they want their kids to have access to.