Warner Bros. Entertainment Inc. has signed an agreement to acquire the remainder of Machinima, an online gaming culture and streaming content platform.
The deal values the company in the nine figure range, according to sources close to the deal. Warner Bros. already bought into the company during Machinima's capital raises in 2014 and 2015.
Warner Bros. plans to fold Burbank-based Machinima into its newly-formed Warner Bros. Digital Networks, according to the company. The purchase was part of a strategy to increase its online engagement and expand its digital presence. The Machinima pickup helps Warner Bros. in key areas – such as its line of DC comic book films, according to Warner Bros. Digital Networks President Craig Hunegs.
“Machinima… 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,” Hunegs said in a statement. “This acquisition is another meaningful move forward as Warner Bros. develops more direct relationships with our consumers.”
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Warner’s parent company, Time Warner Inc., is in the midst of a proposed merger with telecommunications giant AT&T Inc.
Eric Zabinski of O’Melveny & Myers in Century City represented Warner in the deal. Machinima engaged David Sands of Sheppard Mullin in downtown for its legal work and used Jeffries for financial guidance.