Cinedigm completes $16.4 million acquisition of digital media rights | News

Cinedigm, a Los Angeles-based digital channel distributor and operator, has completed its $16.4 million acquisition of streaming, advertising and distribution company Digital Media Rights (DMR).

Chris McGurk

The deal, which was first revealed in January, will see 10 DMR-owned streaming channels, including AsianCrush and RetroCrush, come under the Cinedigm umbrella.

Under the terms of the transaction, Cinedigm paid $8 million in cash at closing and will make additional payments of $8.4 million in cash or stock over the next three years.

Cinedigm, which trades on the Nasdaq, said it expects the acquisition to generate about $10 million in additional revenue and $3 million in additional Adjusted Ebitda over the next 12 months.

The 10 channels acquired from DMR specialize in genres spanning action, horror, arthouse, romance, children’s series, K-pop and more. In addition to AsianCrush, which features Asian movies and TV series, and anime-focused RetroCrush, DMR is also the parent company of Midnight Pulp, Cinehouse, Cocoro, and KMTV. It also operates four YouTube channels (C-Crush, Cinehouse Romance, K-Crush and QTTV), which have over two million combined subscribers.

With this acquisition, Cinedigm now operates over 30 streaming channels and has a content library spanning 46,000 hours of film and TV content. Cinedigm’s streaming channel portfolio includes horror-focused Screambox and Bloody Disgusting.

New York-based DMR was founded by Michael Hong and David Chu over a decade ago. The company focuses on four main areas of activity: managing the distribution of film and television projects on streaming services; operation of streaming channels; curating social video channels for its streaming brands; and operating the ad network and marketplace, which it claims generates more than 100 million connected TV impressions per month.

Cinedigm Chairman and CEO Chris McGurk said: “We have been very deliberate in structuring an agreement that not only works to the benefit of DMR and Cinedigm, but also that of our shareholders, especially given current financial market conditions.

“It also underscores Cinedigm’s strong debt-free balance sheet. We expect this acquisition to be immediately accretive and to offer multiple synergies across all of Cinedigm’s businesses. »

Erick Opeka, President of Networks and Chief Strategy Officer of Cinedigm, added: “Together, we will now have the largest portfolio of streaming channels and a library of size rivaling the biggest players in the industry. We also onboard a team that has extensive experience building brands and communities that fans love.

Earlier this month, Cinedigm revealed it had acquired a minority stake in multi-platform production and distribution company Roundtable Entertainment, which was launched in February by industry veterans Dominic Ianno, John Baldecchi, Alex Dundas and Griffin. Gmelich.

Comments are closed.