Warner Bros. Leads $18 Million Machinima Investment
Machinima has confirmed that it has completed an $18 million financing round led by Warner Bros.
Existing investors MK Capital, Redpoint Ventures and Google Capital also participated in the highly anticipated round first reported by The Wall Street Journal in late February.
"We are thrilled to be partnering with Warner Bros., the leading producer of exactly the type of content that resonates with our global audience of video gamers and millennial males," said Machinima CEO Allen DeBevoise. "There are myriad opportunities to connect Warner Bros.' content to our audience across YouTube and our highly successful apps, and similarly to maximize the value of our content by utilizing Warner Bros.' expertise in global distribution beyond YouTube."
The investment builds on Warners' relationship with Machinima. The studio is the exclusive distribution partner for two seasons of live-action web series Mortal Kombat: Legacy.
"Machinima has been a pioneer and category leader in the YouTube [multichannel network] space, with thousands of channel partners and a premium brand that reaches millions of daily users," said Thomas Gewecke, chief digital officer and executive vp strategy and business development at Warner Bros. Entertainment. "We've been impressed with Machinima as a distribution partner and by their focus on creators and commitment to high quality, exciting original digital content."
Machinima laid off 42 people last week as part of a company reorganization. It was the latest in a string of layoffs for the online video firm, which included a September cutback of 11 percent of its workforce.
The company is also searching for a new CEO to replace chairman and co-founder DeBevoise, who announced he would step down late last year.