Report: Warner Bros. Eyeing Investment In Machinima

by Matt Helgeson on Feb 27, 2014 at 02:26 PM

According to a report in the Wall Street Journal, the media giant Warner Bros. is considering making a large investment in the gaming-oriented video channel Machinima.

In the report, the Wall Street Journal's Mike Shields writes, "The film studio is said to be considering putting $10 million to $15 million into the company, a gaming-centric startup that has built a big following on YouTube, according to people familiar with the situation. Machinima has been searching for more funding as well as a new CEO for several months.

Warner Bros. has until the end of this week to decide whether to invest in Machinima, which appeals largely to young males, according to people familiar with the situation. It may retain an option to buy Machinima outright."

Despite amassing over 321 million YouTube subscribers over its multitude of channels (including the popular Rooster Teeth), Machinima has struggled financially, and recently conducted layoffs.

Machinima previous received investment money from Google and other outside sources. The report says that Warners would likely install its own leadership at Machinima to replace founder and current CEO Allen DeBevoise.

Warner Bros. has itself become a major player in the video game industry with its Warner Bros. Interactive division, which is responsible for the popular Batman Arkham series.

Source: Wall Street Journal via Polygon

Our Take:
Obviously, the Wall Street Journal is a very credible source in the world of business and finance, so it's likely there is some truth to this report. If Warners does buy part of Machinima, it will be interesting to see how it affects the network's content, as WB would likely look to use it to promote its own offering in the gaming space.