Cinedigm Buys Future Today In $60M Streaming Video Deal
Cinedigm Corp (NASDAQ: CIDM) has entered into a definitive agreement to buy video platform Future Today, one of the largest AVOD channel networks in the world, for $45 million in cash and $15 million in Cinedigm common stock.
An Over-The-Top Video Play
This acquisition increases Cinedigm’s over-the-top footprint to over 7.6 million monthly active users and 67 million total app installs, the company said in the Friday announcement.
Future Today generates healthy cash flow and positive net income, with revenues increasing almost 150 percent in 2018, according to Cinedigm.
Future Today owns over 700 content channels with over 70 million app installs and manages more than 200,000 film, television and digital content assets that receive 85 million views per month in a variety of categories including food and lifestyle, entertainment, animation and kids.
The acquisition of Future Today makes Cinedigm the world’s largest premium library of AVOD content, Cinedigm said.
The deal dramatically increases Cinedigm’s reach across leading platforms in the OTT streaming marketplace and enhances the company’s key capabilities for distributing and monetizing content, according to the press release.
The acquisition of Future Today provides Cinedigm with a fully scaled video ad platform, according to the announcement.
It also expands the company’s market position and accelerates growth, as Future Today can now immediately leverage more than 90 new distribution channels increasing revenue growth.
Future Today can take advantage of Cinedigm’s deep relationships in China, expanding into that market, Cinedigm said.
The transaction is expected to close in the second quarter of 2019 and is subject to customary closing conditions.
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