Article written by: Jay Christoph
Time Warner has reached an agreement to buy out YouTube sensation and digital video service: Machinima. According to Deadline, Time Warner was already invested in the company, but this new deal gives it complete control and ownership of the YouTube network. Time Warner will merge Machinima into their newly-founded division, Warner Bros. Digital Networks, which was created in June, to develop digital and video productions. It is planning to deal in direct-to-consumer services and works among alongside corporate family Turner and HBO.
Machinima generated roughly $25 million in profits last year. It has raised nearly $98 million from several funding rounds, including one that Time Warner led last year for $24 million. Among other investors is Redpoint Ventures, MK Capital and Allen DeBevoise.
“Machinima has enormous reach and high engagement with audiences that play our games and are big fans of DC films and television shows,” says Warner Bros. Digital Networks Preisdent Craig Hunegs. “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.”
In lieu of supplying cash, Warner Bros. has made several online-video exclusivities with Machinima, including Justice League: Gods and Monsters Chronicles, and Mortal Kombat Legacy.
All this comes after AT&T officially announced their plans to acquire Time Warner for $85 billion- a deal which is awaiting stockholder and regulator approval.