Google Leads $35 Million Funding Round in Machinima
This time, the rumors turned out to be true.
Google on Monday made its first-ever investment in a YouTube content creator in leading a $35 million funding round in Machinima, an online entertainment company that creates video game-focused content and is the largest channel on YouTube.
Google’s portion of the investment was not disclosed. Also participating in the round were Machinima’s existing investors, Redpoint Ventures and MK Capital.
In a blog post, David Lawee, Google’s head of mergers and acquisitions, explained the company’s reasons for investing in Machinima:
“Online video is at a very exciting phase. First, the audience is larger and more engaged than ever; YouTube has over 800M monthly viewers. Second, new advertising formats are succeeding, and these are proving to be positive for both viewers and advertisers. Finally, the number of connected devices -- including mobile phones, tablets and TVs -- is skyrocketing. This is a big business opportunity and we are very bullish on the potential financial returns.”
Last year, Google acquired Next New Networks, which was formerly the No. 1 channel on YouTube. The new division, called YouTube Next, now manages relationships with other YouTube content creators. The Machinima deal marks the first time Google has made a direct investment in a YouTube channel partner.
Machinima said it would use the funds to invest in content, sales, international expansion, distribution, and new product and technology initiatives.
“With this latest round of funding, Machinima is well-positioned to make the next evolutionary step in the world of multichannel video programming and distribution by expanding into original content, international territories, and new platforms and devices,” Allen DeBevoise, Machinima CEO, said.
Machinima has 168 million monthly users who watch more than 1.6 billion videos per month.
Recent Video Daily Articles
-
TBS, TNT Will Start Live Video Streaming May 15, 10:37 a.m.
TBS and TNT will start offering live streaming of its cable channels, and offer mobile phone ... -
72% of Video Buyers Upped Spending Last Year, Adap.tv Semi-Annual Report Says April 11, 9:26 a.m.
Adap.tv this morning is releasing its semi-annual state of the industry report in New York, which ... -
Tremor's Kilgore Is New IAB Chairman Feb. 25, 9:45 a.m.
Randy Kilgore, chief revenue officer for Tremor Video on Sunday was tapped as the Interactive Advertising ... -
Innovid Touts Positive Effects of Interactive Pre-Roll Feb. 5, 2 p.m.
Advertisers that use interactive elements in their pre-roll benefit from higher engagement and completion rates, compared ... -
WaPo's New Executive Editor Says Paper Will Launch Political Video Channel Jan. 3, 4:10 p.m.
The Washington Post has announced plans to launch a video channel focused on politics this summer. ... -
Apple's iPhone 5 Has A Mountain To Climb To Surpass Samsung's Online Video Buzz Sept. 14, 1:40 p.m.
It may still be early days, but Apple has a long way to go if buzz ... -
DNC Beats RNC In Online Video Views Sept. 12, 3:17 p.m.
In the wake of the big party political conventions, the Democrats have trounced the Republicans on ... -
Martha Stewart Living Omnimedia Turns To Digital Video Sept. 11, 3:38 p.m.
Martha Stewart Living Omnimedia, which has been unprofitable for eight of the last nine years, is ... -
Report Underscores Netflix's Brand Loyalty Problem Sept. 7, 2:01 p.m.
Despite enjoying impressive usage among its user base, streaming media provider Netflix has a serious brand ... -
Report: YouTube To Bring Movie Rentals To Connected TVs Sept. 5, 4:54 p.m.
YouTube movie rentals are on their way to Connected TVs: on Tuesday, it was revealed that ...
Be the first to comment on "Google Leads $35 Million Funding Round in Machinima"
Leave a Comment