Google To Drop Millions On Investment In Machinima

By Megan O'Neill 

Machinima is in the process of raising a new round of funding and Peter Kafka of All Things D reports that Google will be one of the investors.  YouTube has been giving out millions of dollars to professional content creators in the form of loans, to be paid back through advertising, but All Things D reports that this is “the first time Google has openly backed a content company by taking an equity stake.”

Kafka writes, “People familiar with the round tell me it should end up raising more than $30 million, and will value the company at around $190 million, post-funding.  No comment from Google or Machinima.”

Machinima is one of YouTube’s most popular content networks, boasting over 4.4 million subscribers on their YouTube channel, over a billion views a month and a reach of approximately 168 million monthly viewers.

Kafka points out that, “The deal may ruffle some feathers among other video makers, some of whom already complain that YouTube favors Machinima and a handful of prominent content partners.  And people familiar with the funding round tell me that at one point Google considered routing the investment through its Google Ventures arm to try to allay those concerns.”

YouTuber TheWillofDC expresses his concerns with the way YouTube is choosing to spend money as of late in a video response to YouTube’s latest announcement that they’ll be spending $200 million to market their new premium channels, on top of the $100 million that they’ve already invested in these channels. “If you can spend $300 million on a package of channels, some of which haven’t even launched yet, I think we can spend some more money on some of the more glaring issues on the site that have been left unattended for months, if not years!”  He points out that there are still glaring bugs, algorithm issues and more.  And TheWillofDC isn’t the only one that thinks YouTube should be spending their money a little bit differently.

However, Machinima is the fourth most-subscribed YouTube channel and the second most-viewed, following Universal Music Group, so it’s hard not to see how investing in them could be a good move for the online video giant.

Megan O’Neill is the resident web video enthusiast here at Social Times.  Megan covers everything from the latest viral videos to online video news and tips, and has a passion for bizarre, original and revolutionary content and ideas.