Macromedia's Shockwave to Acquire AtomFilms
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shockwave.com, subsidiary of Macromedia Inc., Friday struck a deal to acquire AtomFilms in an all stock deal worth an undisclosed amount.
Under the agreement, AtomFilms shareholders will own 30 percent of the consolidated company. Macromedia said it expects the transaction to close by the first quarter of calendar 2001 and added that the acquisition will not affect its quarterly results for the quarter ending on Dec. 31.
After the deal closes, Macromedia plans to deconsolidate shockwave.com from its financial reports and said it will report its investment interest under the equity method of accounting.
The new company intends to become the world's leading next-generation entertainment company.
Rob Burgess, chairman and chief executive officer of Macromedia and chairman of shockwave.com, will become chairman of the new company. Mike Salmi, founder and CEO of AtomFilms, will fill the CEO slot. Matt Hulett, chief marketing and online officer at AtomFilms, will be president. Michael Comish, managing director of Europe for AtomFilms, will become president, International. shockwave.com CEO Lawrence Levy will serve in a strategic advisory role through the transition.
"AtomFilms and shockwave.com were both created to pioneer new forms of consumer entertainment and to develop new business models for content creators," Burgess said. "By joining the energies and talents of these two highly creative companies, we have the potential to change the way people are entertained around the world."
Salmi added, "By combining our unique distribution channels, technological expertise, proven business models and award-winning catalogs of content, we are building a new media company without equal."
Macromedia said it will supply a financial update and guidance for fiscal 2002 during its quarterly conference call on Jan. 17.