Warner Brothers have announced that it has signed an agreement to acquire full control of digital programming company Machinima.
Terms of the deal were not disclosed but the acquisition put the value of Machinima at just under $100 million according to sources close to the deal. Machinima will now operate as a wholly-owned part of the Warner Brothers Digital Networks group. Warner Brothers was already an investor in Machinima as in 2014, WB led and $18 million investment followed by a $24 million round in February 2015. Other investors in the company include Google, MK Capital, Redpoint Ventures, Coffin Capital and Machinima founder, Allen DeBevoise.
Craig Hunegs, president of business and strategy for Warner Bros. Television Group and president of Warner Bros. Digital Networks, said in a statement
Machinima is a strong gamer and fandom content and social brand with enormous reach and high engagement with audiences that play our games and are big fans of DC films and television shows. Machinima also produces great, high-quality content for their community, and together we can create an even more compelling experience and do some really exciting things involving our key franchises. This acquisition is another meaningful move forward as Warner Bros. develops more direct relationships with our consumers.
Machinima creates original content as well as operating a network of 100,000 creators which reach nearly 150 million viewers per month.
Machinima CEO Chad Gutstein said
Since making their first investment in Machinima in 2014, Warner Bros. has been an active business partner in our transformation, so we already have proof points as to how the companies can work together to accelerate Machinima’s growth plans. We’ll now be able to take full advantage of Warner Bros.’ intellectual property, sales and distribution, while still creating content for social and premium digital platforms that gamers and geeks love.
Plus, we’ll be fully embedded and can help Warner Bros. continue their incredible digital marketing successes. It’s honestly a win-win.
Machinima has, in recent times, looked to generate revenue external to its YouTube revenue streams which were not sufficient enough to sustain the group. The company has formed deals to bring its original programming to the likes of Sony’s PlayStation Vue, Amazon Prime, Verizon’s Go90, China’s Sohu and the CW Network.