Business
Cinedigm Closes Acquisition of Digital Media Rights
Deal Adds 10 New Channels and 7,500 Movies and Television Series to Cinedigm's Booming Streaming BusinessLOS ANGELES, CA / ACCESSWIRE / March 29, 2022 /
About this update from Cineverse Corp.
[{"type":"text","content":"Deal Adds 10 New Channels and 7,500 Movies and Television Series to Cinedigm's Booming Streaming BusinessLOS ANGELES, CA / ACCESSWIRE / March 29, 2022 / Cinedigm Corp. (\"Cinedigm\" or the \"Company\"), a premier streaming technology and entertainment company super-serving enthusiast fan bases, today announced that the Company has closed the acquisition of Digital Media Rights (DMR), a diversified specialty streaming, advertising, and content distribution company with significant expertise in building audiences for global content in North America. The acquisition closed on March 28, 2022 with a purchase price of $16.4 million, payable in installments. The Company paid the first payment of $8 million in cash at closing, which was funded with cash on hand. Cinedigm will make additional payments totaling $8.4 million in cash or stock at the Company's discretion. Cinedigm will pay annual installment payments of $3.0 million, $3.0 million and $2.4 million at 12, 24, and 36 months from the closing date, respectively. Cinedigm expects the acquisition will generate approximately $10 million in incremental revenue and $3 million in incremental Adjusted EBITDA over the next 12 months.The acquisition of DMR scales up Cinedigm to over 30 streaming channel services, 46,000 films and television episodes and 40 million monthly viewers, while adding approximately 18.5 million social subscribers and 4+ billion views. With the addition of DMR's owned and operated, proprietary channels - specializing in genres ranging from anime and pan-Asian programming, to action, horror, arthouse, romance, kid's series, K-pop and more - the Company will now operate 15 wholly-owned streaming services, which comprises over 50% of Cinedigm's channel portfolio. Given DMR's strong programming and tight demographic alignment with Cinedigm's existing subscription services, the Company plans on leveraging its substantial content library to strengthen both Cinedigm and DMR's existing channels beginning immediately. The combined library will also serve as a cornerstone of the Company's forthcoming umbrella streaming service.Founded more than a decade ago by media industry veterans Michael Hong and David Chu, the New York-based DMR focuses on four key streaming-based businesses. First, the company is a leading global distributor of feature films and television series for ...