MTV To Buy Atom Films For $200 Million
Viacom Inc.’s MTV Networks announced that it has agreed to buy Internet video and games company Atom Entertainment for $200 million. Atom Entertainment was formed about five years ago from the merger of Atom Films, known for carrying independent short films, and Shockwave.com, which offered online games. Atom began letting viewers upload their own online films in March this year.
The acquisition now gives MTV access to video-oriented content including downloadable games, home-grown films, and user-generated videos. Atom Films owns Shockwave.com, AddictingGames.com, AtomFilms.com and AddictingClips.com, all heavily-trafficked, niche sites. The acquisition is the latest in a string of purchases involving targeted web-based destinations, a strategy that brings MTV Networks closer to audiences online and better positioned to compete against MySpace.com and YouTube.com. Prior to this, MTV purchased XFire, Y2M, GameTrailers.com, iFilm and Neopets.
Viacom CEO Tom Freston stated that the buy out was “on the money with our digital strategy,” adding that Atom Films “adds great scale with users, improves our growing casual gaming position, and brings a world-class digital video library and a fantastic management team.” The acquisition will incorporate an ad-supported video distribution partnership involving Google and its AdSense advertising network.