AUCTION CHANNEL TO BE BOUGHT.Byline: Dave McNary Staff Writer
Brilliant Digital Entertainment, moving to take advantage of the boom in Internet Internet
Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the auctions, announced Tuesday it will buy the London-based Auction Channel for $7.3 million in stock.
The deal vaults 3-year-old Brilliant into the same league as Internet heavyweights such as Amazon.com and eBay in offering online auctions. Brilliant is a Woodland Hills-based a software developer best known for selling movies that contain potentially hundreds of plot-twist choices.
``Brilliant is the perfect partner for The Action Channel,'' said Jason Gleave, founder and managing director of the channel. ``The company has the technology we can use to enhance auction events and access to capital to support the accelerated growth of our business.''
The deal gives The Auction Channel a 9 percent stake in Brilliant and comes five weeks after five high-profile investors put $4.3 million into Brilliant, which obtained a $6 million line of credit. Brilliant stock, which jumped 35 percent during that single session to $6.75, was off 62.5 cents to $6.375 on Tuesday.
Gleave, in a telephone interview, said the deal is a fast-track method of getting the channel into the U.S. market. ``We've been focused on the European European
emanating from or pertaining to Europe.
European bat lyssavirus
European beech tree
see cryptococcosis. market because the stronghold on fine art auctions is here, but it's become urgent for our auction partners that we establish ourselves in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ,'' he said.
Brilliant, which lost $1.9 million on revenues of $206,000 in the first quarter, will add about 30 Auction Channel employees to its work force of 70 and plans to open an Auction Channel office in the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. area within the next 60 days, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. president Kevin Burmeister.
The privately held Auction Channel broadcasts live auctions - now at the rate of two per week - over satellite, cable and the Internet with interactive bidding. In March, its British TV partner Sky Sports attracted more than 750,000 viewers to its Soccer Legends auction conducted by the Bonham's house. It recently broadcast Christie's first televised auction of tennis memorabilia mem·o·ra·bil·i·a
1. Objects valued for their connection with historical events, culture, or entertainment: posters, publicity photographs, and other movie memorabilia.
Burmeister said Brilliant, which began selling animated Multipath Movies on the Internet and through retailers in December, will set up joint ventures with telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and media partners for live auction broadcasts. Burmeister said the acquisition is a logical way for his company to expand its 3-D graphics and online business capabilities.
``Brilliant Digital has specialized spe·cial·ize
v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es
1. To pursue a special activity, occupation, or field of study.
2. in content that's immersive and stimulates participation,'' he said. ``What was fascinating to us about The Auction Channel was the level of participation from viewers.''
The idea of Internet auctions has received a major boost from eBay and from Seattle-based bookseller Amazon.com, which formed an alliance last week with Sotheby's for an online service that will start in September. Gleave insisted he has been cheered by the popularization pop·u·lar·ize
tr.v. pop·u·lar·ized, pop·u·lar·iz·ing, pop·u·lar·iz·es
1. To make popular: A famous dancer popularized the new hairstyle.
2. of the concept.
``We're very pleased to see these kind of announcements being made,'' he said of the Amazon-Sotheby's deal. ``When I began approaching houses in 1996, I got a lukewarm luke·warm
1. Mildly warm; tepid.
2. Lacking conviction or enthusiasm; indifferent: gave only lukewarm support to the incumbent candidate. reception because it was very difficult to explain that this was going to be a viable business. It took us about two years of broadcasting auctions and developing relationships to show that online auctions are part of the future.''