Atom Films, an online distributor of short films and animation, is expected
to announce on Monday that it has closed its second round of financing,
valued between $15 million and $20 million, according to sources close to
Although the entire list of investors was not
disclosed, Frank Biondi Jr., former head of Seagram's Universal Studios,
and venture capital firm Arts Alliance will join as repeat investors.
First-round investors include Time Warner's Warner Bros. Online and
investment firm Allen & Co.
The sources added that Atom Films
will use the investments to expand its international operations and to
acquire rights to more short films.
Atom Films declined to comment on the expected announcement.
The financing comes as more businesses try to figure out ways
to turn the Internet into a medium for interactive entertainment.
Last week, Warner Bros. launched Entertaindom, its highly
anticipated site for Time Warner-branded and originally produced
programming and information. Meanwhile, Digital Entertainment Network, a
site featuring original Web-broadcast programming for teenagers and
20-somethings, filed to go
public in hopes of raising up to $75 million.