HOLLYWOOD — Netcasters AtomFilms and Shockwave are expected to officially pull the covers off of their newly formed AtomShockwave Corp. today, announcing a management structure, a plan to become profitable by the end of the year and an impressive round of $23 million in additional financing.
Today’s announcement will be the first time the two companies have officially unveiled the new name, although it has been known by industryites for some time (Daily Variety, Feb. 15).
But the bigger news is the amount of financing the company has been able to attract at an almost impossible time for dot-coms, which are no longer Wall Street darlings, while the technology market is being hit hard across the board.
Investors involved in the fresh round include Shockwave parent Macromedia Inc., Sequoia Capital, J.P. Morgan Entertainment Partners, Arts Alliance, Frank Biondi’s Waterview Partners and Intel Capital.
Shockwave acquired AtomFilms in January, and while it was speculated that both sites would merge into one, the company said that it plans to retain its two distinct branded Web sites.
In a surprising announcement, it also said it plans to reach profitability by the end of 2001, based on revenues generated on the sale, syndication, and distribution of content, as well as e-commerce. Company plans to beef up its offline efforts, distribbing its library of short films, animation and games across cable TV, airlines, Internet, handheld devices, among others avenues.
Its syndication partners, many of which were attracted by AtomFilms, include British Airways, HBO, Blockbuster.com, Cisneros Television Group, Ford, Microsoft’s Pocket PC, TiVo and Volkswagen.
“This is a new entertainment company with an even broader array of distribution channels via its two distinct brand offerings,” said Mika Salmi, CEO of AtomShockwave. “AtomShockwave will continue to be at the forefront of the entertainment industry as both distribution and technology evolve.”
Based in San Francisco, AtomShockwave operates offices out of Los Angeles, New York, Tokyo and London.
AtomShockwave’s board of directors includes Rob Burgess, chairman and CEO of Macromedia, as chairman; Bob Daly, former Warner Bros. topper and current chairman and managing partner of the Los Angeles Dodgers; Richard Barton, prexy and CEO of Expedia; Thomas Hoegh of Arts Alliance; Michael Moritz of Sequoia Capital; and AtomShockwave topper Salmi.
Its executive team includes Mika Salmi as CEO; prexy Matt Hulett; Michael Comish, prexy of international.; Heather Redman, executive veep of corporate strategy; Eric Cansler, senior veep of finance and operation; Michael Yanover, senior veep of entertainment; and Mike Edmunds, senior veep of interactive products.