Turbine has revealed that it has raised $40 million in equity financing from investors who include the entertainment conglomerate Time Warner Inc. and GGV Capital, a leader in expansion-stage venture capital investments in the U.S. and China. The investment will be used to further accelerate Turbine’s growth as a global leader in online entertainment.

In April 2007, Turbine launched The Lord of the Rings Online: Shadows of Angmar (LOTRO), the first MMORPG based on the books of J.R.R. Tolkien. The money will allow the studio to expand its gaming portfolio and hopefully create more persistent online worlds that are as addictive as LOTRO.

“This is truly an exciting time for Turbine. The addition of Time Warner, one of the world’s largest media companies, and GGV Capital, one of the financial community’s most sophisticated investors, adds a level of access, perspective and experience to Turbine that is singularly unique in the global online entertainment space,” said Jim Crowley, president and CEO of Turbine, Inc.

“Turbine has an extraordinary team, incredible technology and a growing portfolio of games based on some of the most popular brands ever created. With this funding we are uniquely positioned to change the future of online entertainment as we bring new titles to market, expand the platforms we support and introduce new technologies to sustain self-evolving game worlds.”

“The demand for massively multiplayer online worlds is exploding both geographically and in terms of platforms served,” said Hany Nada, managing partner, GGV Capital. “Turbine is a proven leader in massively interactive online entertainment and the incredible technology that supports it. We look forward to marrying our strengths both here and in Asia with Turbine’s unique capabilities.”

A new Ascheron's Call on the way, maybe?