to buy AtomFilms

Published on .

Macromedia's entertainment unit Dec. 15 agreed to buy AtomFilms in an all-stock deal, in which AtomFilms' shareholders will hold 30 percent of the new company.

In the face of many online entertainment sites closing in 2000, including Digital Entertainment Network and Pseudo Programs, and AtomFilms will be pooling resources and trying to expand their revenue base. AtomFilms has more than 1,500 short films and animations, while offers animation as well as interactive games and music. Shockwave has more than 30 million registered users, while AtomFilms has taken more of a syndicated content approach to date, providing content to Internet sites, broadband services, TV, airlines and wireless devices.

Rob Burgess, chairman-CEO of Macromedia and chairman of will become chairman of the new company. Mika Salmi, the founder and CEO of AtomFilms, will be CEO. Matt Hulett, chief marketing and online officer at AtomFilms, will become president. CEO Lawrence Levy will serve in a strategic advisory role through the transition. The new company will be based in San Francisco; AtomFilms is currently based in Seattle.

Copyright December 2000, Crain Communications Inc.

Most Popular
In this article: