Cinedigm (NASDAQ:CIDM) announced that it has entered into a definitive agreement to acquire Future Today for US$45 million in cash and US$15 million in Cinedigm common stock. As quoted in the text release: The acquisition increases Cinedigm’s OTT footprint to over 7.6 million Monthly Active Users and 67 million total app installs and is expected … Continued
Cinedigm (NASDAQ:CIDM) announced that it has entered into a definitive agreement to acquire Future Today for US$45 million in cash and US$15 million in Cinedigm common stock.
As quoted in the text release:
The acquisition increases Cinedigm’s OTT footprint to over 7.6 million Monthly Active Users and 67 million total app installs and is expected to be immediately accretive. Future Today generates positive net income and healthy cash flow, with revenues increasing by almost 150% in calendar year 2018 to an estimated $23.9 million in full year revenues.
Future Today Inc owns and operates more than 700 content channels with more than 60 million app installs, and manages more than 200,000 film, television and digital content assets that currently receive more than 85 million video views per month in a variety of categories including entertainment, movies, food & lifestyle, animation, and kids.
Future Today has several proprietary brands which have become market leaders in the ad-supported marketplace, headlined by flagship channels Fawesome.tv focused on general entertainment movies & television shows, and HappyKids.tv, the #1 free kid’s channel providing age-specific edutainment in the connected TV market.
Future Today’s cloud-based technology and ad-based monetization platform manages OTT services for more than 350 content owners, producers, distributors and major media companies helping them launch and monetize complex Connected TV channels across devices in a matter of days. Key partners such as Filmrise, WatchFreeFlix, and several others have experienced major growth in watch time and user engagement since moving to the Future Today OTT platform.
“Building our stake in the rapidly surging AVOD business is a top priority for Cinedigm, and the acquisition of Future Today instantaneously transforms our Company into the world’s largest provider of premium AVOD content by adding an established, fast growing and active platform that includes a high volume of some of the most highly sought-after premium OTT programming,” said Chris McGurk, Cinedigm Chairman and CEO. “Just as important, the technology and distribution assets we will gain will provide us with immediate launch points for expansion into China and India. Future Today’s low-cost production assets combined with our low-risk, co-production model will enable us to provide exclusive, original premium content more quickly and with less risk than our competitors. This acquisition will be a key go-forward catalyst as we near the contractual end of our Cinema Equipment operations. We will continue with our plans to sell cinema equipment to our theater partners, as evidenced by the recent sales of projection systems, and we will continue to further streamline our entertainment distribution business. We are very pleased to welcome Alok, Vikrant and the entire Future Today team to Cinedigm.”
Alok Ranjan and Vikrant Mathur, co-founders of Future Today, will continue to lead and operate Future Today as Co-Presidents and will enter into long-term employment agreements with Cinedigm upon deal closing.
“Future Today’s pioneering technology platform, massive install base, leading OTT brands in Kids and Entertainment verticals, and AVOD footprint, combined with Cinedigm’s premium content and extensive distribution reach, should propel immediate strong growth and create substantial shareholder value,” said Ranjan.