Vendare's Vivendi purchase boosts online gaming repertoire.

SHERMAN Oaks-based online marketing and advertising firm, Vendare Group, has acquired Vivendi Universal's online gaming unit, Flipside Inc. for an undisclosed amount.

The acquisition continues Vendare's expansion into online gaming. Last year the company acquired a number of online gaming firms, including BigPrizes.com, Sportskill.com and Blink.com.

The company's strategy has been to attract people with free online games that resemble Las Vegas-style gambling, but without betting or money transactions. Winners, however, get prizes like shopping coupons or gift certificates.

"We put up ads for our customers that they can see while riley play," said Vendare CEO Keith Cohn.

Under the deal with Vivendi, Vendare will add online versions of popular TV game shows like "Family Feud," "To Tell the Truth," and "Match Game," to its growing number of online games. Vendare will also add Flipside's database of 24 million consumers, further expanding its own database for direct marketing efforts.

"Flipside brings to the Vendare Group a variety of proprietary games that allow us to appeal to a larger audience (and) introduce a subscription and fee-based model," Cohn said, adding that Vendare's iWin site will be sold to pay-per-play online game provider Next Game for an undisclosed amount.

Vendare will continue to operate its other sites, including its flagship Jackpot.com which was the company's first online gaming site when it began operations in 2000.

The company was initially funded with a $10 million investment, mostly from Pasadena's IdeaLab. It began with virtual slot machines, poker and solitaire before adding more games and Web sites in succeeding years.

Sci-FI Convention Readied

Actor, producer Richard Hatch says the "Galacticon 2003" convention marking 25 years of the TV science fiction show "Battlestar Galactica," is on schedule for Oct. 24-26 after reaching agreements with some of the show's former cast members and its creator to attend.

Actors Patrick McNee, Dirk Benedict and show creator and producer Glen Larson have recently agreed to participate in the event scheduled for the Universal Sheraton Hotel.

Hatch, who starred as Apollo in the 1979-80 show, is producing the event meant to gather an estimated 10,000 fans during the three-day run of the event. Galacticonevents.com, a Web site about the event has also recently gone up.

"We're getting great response from the former cast members and the fans of the show," Hatch said. The event is meant to coincide with a new version of the show set to air this fall on the Sci-Fi Channel. Hatch says he disagrees with the new show's direction, which has angered many of its fans since many of its original characters have been changed or eliminated. But Hatch says he's extended invitations to the show's producers to attend the convention and address fans.

A few years ago, Hatch had unsuccessfully pitched Universal Pictures, which owns the show, on developing an updated version of the series for network television.

Hatch is currently developing a science fiction series "The Great War of Magellan," and his fifth novel. "Paradise" based on "Battlestar Galactica," was released last month.

DIC Signs Deal with Start Lee

Burbank-based DIC Entertainment Inc. has signed a development deal with SpiderMan and Hulk creator Stan Lee and his POW Entertainment production company.

Lee, who is also executive producer of the Spike TV cartoon series "Stripperella" and creator of scores of comic book superheroes, will develop characters for a new project dubbed "Stan Lee Universe." The first project under the new development umbrella will be the animated series "Stan Lee's The Secret of the Super Six."

Lee said the project will feature a team of genetically-engineered alien teens who escape to Earth and meet Lee who becomes their mentor and teaches them what it means to be human.

The effort is D1C's entry into the superhero industry after making its mark in traditional children's animation with such characters as Madeline, Inspector Gadget, Sabrina the Teenage Witch, Sonic the Hedgehog and others.

Andy Heyward, DIC's CEO said the deal allows his company to expand its efforts in developing new properties for television, licensing and merchandising.

Kellner to Retire

Jamie Kellner, WB Network chairman and CEO, says he'll retire when his contract expires next summer from the network he founded in 1995.

"I just think it's the right time to step back from the network," said Kellner, who just last year returned to the network after a two-year stint as chairman and CEO of WB sister network Turner Broadcasting System.

Kellner, who also launched the Fox Network in 1987 for Rupert Murdoch's News Corp., said he plans to focus on improving the network's affiliate base before he leaves.

EdenTree Raises $1.5 million

EdenTree Technologies, a Camarillo-based networking equipment-maker, has raised $1.5 million in Series A financing funding.

The firm completed the financing round with lead investors from Keiretsu Forum, an angel investor group in Westlake Village, made up of private equity investors, venture capitalists and corporate investors.

Ron Burr, co-founder of NetZero and Westlake Venture Partners, led the round which included the Band of Scoundrels, a Canadian investment group, and other private investors.

Brent Reinke, an attorney with the Westlake Village office of Reed Smith Crosby Heafey was assisted by Karen Pang in closing the transaction.

High Definition Production Increases

More producers are getting into high definition video than ever before thanks to the high quality and reduced costs of the format, say high definition experts at North Hollywood-based Postproduction company IO Film.

"You really can't beat the quality of the images and that's having a big impact on the industry," said Lucas Wilson, director of HD post production for IO, which hosted an open house and seminar on July 15.

Wilson, who is nominated for an Emmy Award for his work on the "Children of Dune," Sci-Fi Channel miniseries, said the growing acceptance of the medium also stems from the declining costs of HD production.

"It's still more expensive to do HD, but it's getting less costly," he said.

Business Journal Reporter Carlos Martinez may be reached at [phone] or by e-mail at [e-mail]