This is possibly the most interesting one-two punch for an MCN since Maker got that windfall investment and then laid off a bunch of employees. This happens to be the opposite — Machinima, seemingly on the cusp of experiencing some real losses, has just laid off 42 employees — only to now catch a reported $18 million booster shot in the ass from Warner Bros.
The employee reduction was allegedly part of a restructuring deal with the movie studio — which if sources are correct, could see Warner Bros. purchasing Machinima outright. And with Machinima floundering since their CEO, Allen Debevoise, walked the plank in November, maybe that’s not such a bad thing.
As 42 employees equates to 23 percent of the company, several of the cuts have been made from senior executive positions as well as the bright-eyed youngsters just starting out in their dream jobs. Machinima is still providing daily content from their assortment of channels though, and with the influx of cash — it will certainly help soften the hemorrhaging.
While $18 million might seem like a significant chunk of money to you or I … or even someone far richer than us both, it was allegedly far less than Machinima was originally seeking and reports are stating that while Machinima was seeking buyouts in the $600 million range just a couple years ago, Warner Bros. might just get them for a song.
Good luck, Machinima. Here’s some business news to ease your pain: