Warner Bros. is close to acquiring digital video outfit Machinima at a value of less than $100 million, reported subscription-only site The Information on Wednesday. The studio already owns a stake in Machinima, having invested $42 million via two rounds of funding in 2014 and 2015.
Machinima had set its asking price at $150 million but could not find a buyer at that level, which is twice its 2016 projected revenue.
Besides Warner Bros., Google, MK Captial, Redpoint Ventures, Coffin Capital and Machinima founder Allen DeBevoise are all investors in the YouTube network, reports Variety.
Machinima was launched in 2000. In 2014, CEO Chad Gutstein joined the company and he has been working to diversify the company’s revenue streams via distribution and subscription video on demand sales. The company works with a network of partners who collectively produce around 100,000 videos per month. Machinima itself also produces original series, including BFFs, 150 Facts and The Bacca Chronicles.
In August, Machinima set a deal with Amazon that allows it to offer its original programming as an add-on subscription service as part of the Amazon Channels partner program. Machinima also has distribution deals with Sony’s PlayStation Vue in the U.S., Sky in the UK, LeEco in China, AMC Networks Iberia in Spain and with Chinese internet giant Sohu.
Machinima also had an eSports docu-series, Chasing the Cup, air on The CW earlier this year, and it licensed series exclusively to Verizon’s Go90 service.
READ MORE: Variety