Company: Atom Entertainment
Description: Online game, video and film publisher
Location: San Francisco
Amount of VC raised : $87 million
VC firms: Sequoia Capital, Jim Clark, Arts Alliance, Macromedia, Intel Capital, Trans Cosmos, Warner Bros. Online, JPMorgan Entertainment Partners, Waterview Partners
VC directors: Thomas Hoegh, Michael Moritz
Exit type: Trade Sale to Viacom
Exit valuation: $200 million
Absolute return: 129%
Memorable quote: Rob Burgess, chairman and CEO of Macromedia, said at the time of the merger between Macromedia's Shockwave and Atom Films in December 2000: “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.” We're still waiting for the potential to be realized.
Memorable awards: Shockwave.com's premium subscription service, GameBlast, was named "Best Games Service" at Digital Hollywood's annual On Demandies award ceremony in March 2005.
Quick take: With all of the investors holding shares of this company, it won't be easy divvying up the proceeds. The company began life as Atom Films in 1999 when it closed a $20 million round led by JP Morgan and Arts Alliance. At around the same time, Shockwave was spun out of Macromedia with $44 million in venture capital financing from Sequoia Capital and Jim Clark. In January 2001, the two companies merged leaving Atom shareholders with 30% of the combined company. The combined entity later went on to raise more funding. So, there you have it. A lot of investors will receive a mediocre return. And with all the hoopla surrounding online video, now seems like a strange time to sell. Then again, maybe after seven years in the online video business, they know something the rest of us don't.

For more on Atom's sale, see:
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Tags: atom+entertainment, viacom, vc, venture capital