The big kids at Digital Entertainment Network (DEN), a Gen-Y geared on-line
programmer, have received much-needed play money to the sum of US$24
million. The new round of financing includes investments from NBC, Chase
Capital Partners, Enron Broadband Services Inc. and Intel, among others.
Missing from this round of financing is former Warner Bros. chairman, Terry
Semel. However sources say he has separately invested $2 million in the
company. Santa Monica-based DEN has also restructured its management team,
making Gary Gersh, former co-president of DEN Music Group and past
president and CEO of Capitol Records, chairman; chief technology officer
and former Microsoft exec Greg Carpenter has been made CEO and chief
information officer; former Disney TV president David Neuman will continue
as president; and John Silva, co-chairman of management firm GAS
Entertainment and formerly co-president of the DEN Music Group, will now
serve as president of the tunes division. The additional funding, which
brings its total to $65 million, tech partnerships and management
re-alignment is expected to light a fire under the feet of the troubled
Netcaster. Plus, executive salaries that were reportedly the highest in the
biz have been significantly altered. Currently, the network broadcasts such
interactive shows as college-centered FRAT RATZ, the Christian-themed
REDEMPTION HIGH, Flash-animated FAT KID and AGGRONATION, an extreme sports
show. "With these agreements, we have completed the necessary
infrastructure to economically create, promote and deliver our extensive
array of Internet entertainment content," Carpenter said. Last May, DEN
raised $30 million from Chase Capital, Dell, Microsoft and senior partners
of Lazard Freres. The new cash will help move DEN closer to its plans to go
public in a $75 million offering. Original plans had an IPO scheduled for
the end of 1999.
Rick DeMott
Animation World Network
Creator of Rick's Flicks Picks
