Lionsgate has invested in video-sharing website Break.com in a deal that will enhance the company's distribution capabilities on the Internet.
Citing sources close to the deal, Globe and Mail said that Lionsgate, and independent film studio, has traded close to $20 million in shares of the company for a 40 percent stake in Break.com.
“The partnership will allow Lionsgate to leverage its vast array of content, including its library of more than 11,000 motion picture titles and television episodes, into Break.com's fast-growing online video entertainment channel,” Lionsgate said in a press release.
Break.com targets young male in the 18-to-34 demo, and is known for being edgy and hip in that space. The site, according to Lionsgate, receives an estimated 17 million visitors monthly.
Lionsgate has used the website to advertise on in the past and has been impressed with the results, one of the key motivators for buying into the company.
Break CEO Keith Richman said it was a great opportunity to "accelerate" the growth of the website into a "world-recognized entertainment channel.
Comment Preview