Warner Bros. announced that it has signed an agreement to acquire Machinima, the global programming service focused on fandom and gamer culture. Financial terms were not announced. Variety reported that the deal is valued at slightly under USD 100 million.
Machinima is the 10th largest digital video entertainment media company in the U.S. ranked by total unique viewers, according to comScore. Warner announced that It will become part of the recently founded Warner Bros. Digital Networks (WBDN). WBDN works closely with other Time Warner companies, such as HBO and Turner, as part of its overall strategy to reach audiences directly through company-owned current and yet-be-launched OTT services. If AT&T-Time Warner merger is approved, Machinima will be an important asset in AT&T’s online content strategy.
The deal comes two years after Warner invested for the first time in Machinima. In the past two years, Machinima has transitioned from a YouTube MCN to a global programming service and production company delivering popular programming to millions, Warner said in a statement.
James Glasscock, SVP Strategy and Business Development of Machinima, participated of the last edition of NexTV CEO Latin America 2016 to share his vision on the business and the online strategy of MCNs. In addition, Dataxis offers the report “YouTube Channels & MCN’s tracker in Latin America”.