The massive, gamer-driven YouTube channel network is in a state of flux, but adds much needed capital
Machinima announced Monday that it has secured much-needed capital, though perhaps not at the level to which they had aspired.
The massive network of millennial, gamer-drive YouTube channels raised $18 million in financing, led by Warner Bros. Entertainment and with existing investors MK Capital, Redpoint Ventures, and Google Capital participating.
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“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 videogamers and millennial males,” Machinima Chariman and CEO Allen DeBevoise said in a statement. “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.”
Last week, the Wall Street Journal reported that the deal was in the offing. It's far less than what the network had wanted to raise, but the company has been marked by uncertainty and upheaval of late. DeBevoise is looking to step down, leaving the company in search of new leadership, and just last week they fired 42 employees in its sales division, which followed several rounds of layoffs last year.
Also read: Machinima to Cut 10 Percent of Staff
The deal matches Machinima and Warners as content partners, as noted in both DeBevoise's statement and that of Craig Hunegs, Warners Bros. Television Group's President for Business and Strategy.
“We're excited about the opportunity to work closely with Machinima and its channel partners to reach new audiences, create new original content, and discover new talent,” he said.
Machinima already serves as the distributor for two seasons of the “Mortal Kombat: Legacy” web series, which is produced and published by divisions of Warner Bros.