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Photo: VENN

The Video Game Entertainment and News Network (VENN) will announce Tuesday a $26 million Series A investment round co-led by BITKRAFT Ventures, an eSports and gaming venture capital firm, as well as Nexstar Media Group, executives told Axios.

Why it matters: The network started out in streaming, but will now be moving some of its shows to linear television through its strategic partnership with Nexstar. Large production networks typically operated in the opposite direction — making shows for linear TV and then selling them to streaming distributors later.

The goal of the raise, VENN's co-founders Ben Kusin and Ariel Horn told Axios, is to help expand and broaden VENN's audience using Nexstar's mass reach.

  • Nexstar is one of the largest U.S. broadcast companies, with 197 television stations in 115 markets across the country. It also has a sizeable digital audience, with over 100 local news sites that collectively see over 100 million monthly uniques.
  • With the deal, Nexstar will secure the right to appoint a member to VENN’s board of directors, as well as exclusive rights to broadcast VENN for local television.

Details: Eldridge, WISE Ventures, Alumni Ventures Group, and the majority of the companies' existing seed investors also participated in the round.

  • VENN raised its $17 million seed round in September when it launched. Its' streaming deals with platforms like Twitch, YouTube and Snapchat
  • With its Series A raise, the company will also announce that Viacom and NBC Sports veteran Jeff Jacobs, will join the company as EVP & General Manager.
  • Jacobs will oversee VENN’s growth and expansion via its content and business operations.

Between the lines: Horn and Kusin both come from gaming backgrounds.

  • Horn was perviously the Global Head of eSports Content and Executive Producer of the League of Legends Championship Series (LCS) at Riot Games. (LCS is one of the biggest global Esports franchises.) Kusin was previously an executive at Vivendi Games which later merged with Activision Blizzard.

The big picture: Esports is one of the fastest-growing segments in sports entertainment. The sector is expected to bring in over $1 billion in revenue for the first time this year.

  • Over the past few months, sports broadcasters have leaned into eSports to fill the programming gaps left from professional sports leagues canceling games.
  • "All of traditional media is trying to make itself more future-proof," Kusin said. "This is an attractive crossover moment."
  • Kusin notes that VENN's investment in quality programming, via a top-of-the-line studio and professional Esports analysis makes VENN's shows "palatable for a TV audience but able to pass muster for a streaming generation."

What's next: The company hopes to announce an international expansion in the near future.

Go deeper: Inside the esports investment boom

Go deeper

Discovery joins Hollywood streaming wars with launch of discovery+

Discovery

Discovery on Wednesday launched its new global entertainment streaming service discovery+ for $4.99 monthly. It will also include a $6.99 monthly ad-free tier in the U.S.

Why it matters: Discovery joins a very crowded field of entertainment streaming services vying for consumers' budgets.

Dan Primack, author of Pro Rata
8 hours ago - Technology

TikTok gets more time (again)

Illustration: Aïda Amer/Axios

The White House is again giving TikTok's Chinese parent company more to satisfy national security concerns, rather than initiating legal action, a source familiar with the situation tells Axios.

The state of play: China's ByteDance had until Friday to resolve issues raised by the Committee on Foreign Investment in the U.S. (CFIUS), which is chaired by Treasury secretary Steve Mnuchin. This was the company's third deadline, with CFIUS having provided two earlier extensions.

Federal judge orders Trump administration to restore DACA

DACA recipients and their supporters rally outside the U.S. Supreme Court on June 18. Photo: Drew Angerer via Getty

A federal judge on Friday ordered the Trump administration to fully restore the Deferred Action for Childhood Arrivals program, giving undocumented immigrants who arrived in the U.S. as children a chance to petition for protection from deportation.

Why it matters: DACA was implemented under former President Obama, but President Trump has sought to undo the program since taking office. Friday’s ruling will require Department of Homeland Security officers to begin accepting applications starting Monday and guarantee that work permits are valid for two years.