Two Film Web Sites to Announce Merger

Two Web sites devoted to the work of young filmmakers, Hypnotic and Nibblebox, are expected to announce today that they have merged. The new Hypnotic will be fueled by $15 million raised from the two companies’ original investors, including media giant Vivendi Universal, and one new backer, Desdner Kleinwort Capital.

Hypnotic founder Jeremy Bernard, who will be president and chief operating officer of the new company, said he expects to reach profitability in part by focusing on “advertainment,” advertiser-sponsored short films that promote brands or products. David Bartis, the co-founder and co-chief executive of Nibblebox, will become the chief executive of the combined companies. Financial terms weren’t disclosed. The new company has 37 employees split between Los Angeles and New York, or about 10% fewer than the two companies had before the merger, Bernard said.