In its first move to directly back a content company, Google is participating in a funding round for Machinima, a prominent content partner for YouTube. In contrast to Google’s other investments for YouTube content, this is not a loan but investment for an actual equity stake.
This round is expected to raise more than $30 million, which will value Machinima at $190 million.
Machinima, which reportedly generates in excess of a billion views per month, produces videos primarily for videogame players.
“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,” reports Peter Kafka for AllThingsD.
“The counter to that argument: Why shouldn’t Google back content producers who make stuff for its properties? After all, YouTube is trying to become more like TV. And most of the big TV networks own their own studios outright,” suggests Kafka.
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