The world was captivated when footage of a badly burnt koala drinking water from a Victorian firefighter's bottle was uploaded to You Tube in February 2009. When the story of "Sam the Koala" was adopted by the mainstream media, recombinant themes were used to construct her story - from heroism and patriotism to villain vs victim and romance. While scholars have examined the changing role of the journalist in a converged world and the rise of "soft" news, this paper focuses on the way journalists create disjointed narratives around You Tube footage to extend a story s lifespan. We call these new narrative forms "fractured fairy tale news" to describe this emerging phenomenon of convergence culture. Further, we suggest that news media exploit the YouTube community for their own commercial gain and conclude that the fractured fairy tale style is a poor vehicle for the future of news.