Time Warner is putting its money behind YouTube production house, Maker Studios, which specializes in funny You Tube Clips such as Epic Battles in Rap History. Time Warner's Investments arm is leading a financing round in which Maker Studios hopes to raise $40M, valuing the studio at a whopping $200M. This investment continues a trend in which big companies are investing in YouTube content. Another recent example is Machinima, which raised $35M from Google and other investors for its studio that specializes in YouTube clips for videogame fans.
Is this a good investment from Time Warner? Well, there's little debate that internet video is an area of growth. My opinion is that quality content has value no matter what the channel. Much of the money raised will be used to hire sales talent to sell advertising for the studios. Therefore, if YouTube studios like Maker Studios can attract views on a consistent basis and also sell advertising for their videos, they will be worth the investment.
After watching this video, I think you'll agree that Maker Studios has some quality material.
Epic Rap Battles: Bruce Lee vs. Clint Eastwood
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