James Delahunty
12 Jul 2007 4:02
Lionsgate Entertainment Corp. revealed on Wednesday that it has made an investment in online video sharing site Break.com. While the Vancouver-based studio did not reveal any financial terms officially, it is believed the company invested $21 million in stock for a 42% stake in the company. Break.com first opened in 1998, surviving the dotcom boom that took out so many web businesses shortly after.
Lionsgate said that the deal was struck to allow the company to distribute its content and promote its upcoming movies and TV series on Break's online video entertainment channel. Michael Burns, Lionsgate vice chairman said the company plans to leverage its intellectual property "that we have never monetized," like behind-the-scenes footage, deleted scenes and trailers.
"Lionsgate's tremendous arsenal of cutting-edge content and its commitment to innovative growth in the digital space make it the perfect partner," Break CEO Keith Richman said. Lionsgate also has a 20% stake in CinemaNow and said it doesn't expect Break.com to be its last digital investment.
Source:
Yahoo (Reuters)