Time Warner has reached an agreement to buy the digital video service Machinima, according to Deadline. Time Warner was already an investor of the company, but this new deal gives it complete control and ownership of the YouTube network - which it will fold into its newly-minted division, Warner Bros. Digital Networks. Machinima currently airs several animated series including Justice League: Gods and Monsters Chronicles, Transformers: Combiner Wars, and Mortal Kombat: Legacy.
"[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.”
Machinima generated a reported $25 million in revenue in 2015, as well as raising $98 million in private funding rounds.
“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," said Machinima CEO Chad Gutstein. "Plus, we’ll be fully embedded and can help Warner Bros. continue their incredible digital marketing successes. It’s honestly a win-win.”
This comes after AT&T officially announced plans to acquire Time Warner for $85 billion - a deal which is awaiting stockholder and regulator approval.