AtomFilms will own about 30 percent of the new venture. Ron Burgess, chairman and CEO of Macromedia and chairman of Shockwave, will be the new company's chairman.
Analysts say the merger involves an industry that has been struggling of late.
This year saw the failure of the Digital Entertainment Network, which was supposed to be huge. The deal will also join Shockwave's 30 million registered visitors with the estimated 150 million viewers in both the offline and online worlds that AtomFilms says it can access. But most of those deals were for single pieces of content. The merger with AtomFilms is the first time Shockwave has linked with an entire library of content, said one industry analyst. Inc. All rights reserved.