Today’s announcement and other financial moves reportedly in the works for the gaming-oriented online service underscore how hard it is for channels to make money at YouTube. Machinima — which describes itself as “the number one global video entertainment network for young males” — says today that the layoffs, hitting 30% of the workforce, are part of its “restructuring in and around its sales organization” as it leans on its “longstanding partnership with YouTube to drive media sales.” But it also comes as it lines up $18M in funding from a group led by Warner Bros, website Re/code reports, citing “people familiar with the transaction.” Last week The Wall Street Journal reported that Warner Bros was mulling the possibility of investing as much as $15M in the online video operation. The numbers are a far cry from the amounts approaching $70M that Machinima was said to be hoping to secure last year. One of the problems for YouTube services like Machinima is that Google takes about 45% of the ad revenue it sells, as well as much of the inventory. Google, Redpoint Ventures, and MK Capital are among the major investors in the company. Today’s layoffs come less than four months after Machinima trimmed 10% of its work force as part of a plan to increased its commitment to programming and distribution and its YouTube network.
Machinima Lays Off 42 Employees As It Turns To YouTube To Sell Ads
What's Hot on Deadline
Moviegoers Turn Out For The 'Apocalypse' Over Memorial Day & Chop Off 'Alice's Head - Sunday AM Update
'Alice' Sees $65M In Offshore Looking Glass; 'Warcraft' Scores $31.6M; 'X-Men' Cumes $186M - Intl Box Office
'The Carmichael Show' Star On Tonight's Donald Trump Fueled Finale, Bill Cosby's Trial, Season 3 & "Big Picture" NBC
Latest Business News
- Indie Producers Say They're Getting Shortchanged By California's Tax Incentives Program
- ‘American Psycho’ Will Close On Broadway Before The Tony Awards At $8.8M Loss
- Viacom’s Battle With Sumner Redstone Could Hurt Credit, S&P Says
- Court Sets June Date For Philippe Dauman’s Case Against Sumner Redstone
- Lionsgate Joins Fox, Par & Uni In Nixing Exhibitor Clearance Requests: What Does This Mean For The Biz?
- Viacom Renews And Expands Carriage Deal With Cox Communications