Atom Films to disclose second financing round

Atom Films, an online distributor of short films and animation, is expected to announce on Monday that it has closed its second round of financing, valued between $15 million and $20 million, according to sources close to the negotiations.

Although the entire list of investors was not disclosed, Frank Biondi Jr., former head of Seagram's Universal Studios, and venture capital firm Arts Alliance will join as repeat investors. First-round investors include Time Warner's Warner Bros. Online and investment firm Allen & Co.

The sources added that Atom Films will use the investments to expand its international operations and to acquire rights to more short films.

Atom Films declined to comment on the expected announcement.

The financing comes as more businesses try to figure out ways to turn the Internet into a medium for interactive entertainment.

Last week, Warner Bros. launched Entertaindom, its highly anticipated site for Time Warner-branded and originally produced programming and information. Meanwhile, Digital Entertainment Network, a site featuring original Web-broadcast programming for teenagers and 20-somethings, filed to go public in hopes of raising up to $75 million.