Shockwave.com, an interactive entertainment Web site, and AtomFilms, an entertainment company that markets and distributes short-form films and animation, announced a merger agreement Friday.
The intent of the merger is to form a global entertainment company that delivers new forms of content to online and offline consumers and businesses worldwide, the companies said in a joint statement.
Shockwave will acquire AtomFilms in a stock-for-stock deal. The value of the deal was not disclosed, although shareholders of AtomFilms will own 30 percent of the consolidated company.
The new company will announce a new name when the deal closes — sometime in the first quarter of 2001 — and will be headquartered in San Francisco.
As a merged enterprise, the companies claim that their strengths encompass a large amount of varied content, including AtomFilms' 1,500 short film and animation titles and Shockwave's interactive games, music, and its roster of shows and series.
Shockwave has more than 30 million registered users and is a Media Metrix top-50 site.
The online traffic advantage, combined with AtomFilms' access to 150 million viewers worldwide through offline distribution agreements, forms the industry's largest audience for next-generation content, the companies said.
The enterprise will take advantage of AtomFilms' distribution relationships with Internet sites, broadband services and wireless devices.
“We have the potential to change the way people are entertained around the world,” said Rob Burgess, chairman of Shockwave.com and soon-to-be chairman of the new enterprise.
Mika Salmi, founder/CEO of AtomFilms, will be CEO of the new company. Matt Hulett, chief marketing and online officer at AtomFilms, will be president.