Cinedigm completes $16.4 million acquisition of digital media rights – TBI Vision
Los Angeles-based distributor and channel operator Cinedigm has completed its $16.4 million acquisition of North American streaming, advertising and distribution company Digital Media Rights (DMR).
The acquisition will bring ten DMR-owned streaming channels, including AsianCrush and RetroCrush, under the Cinedigm umbrella, and the company expects the purchase to generate around $10 million in additional revenue and $3 million additional adjusted EBITDA over the next 12 months.
Under terms of the agreement, Cinedigm paid $8 million in cash at yesterday’s close and will make three further payments totaling $8.4 million in cash or stock every 12 months from the date of closure for the next three years.
With the acquisition of DMR, Cinedigm now operates over 30 streaming services, with a content library of 46,000 movies and TV episodes. DMR’s channel covers genres ranging from anime and pan-Asian programming to action, horror, arthouse, romance, children’s series and K-pop.
Founded more than a decade ago by media industry veterans Michael Hong and David Chu, New York-based DMR focuses on four key businesses: distribution of feature films and TV series for streamers; the operation of streaming channels for “passionate audiences”; curating social video channels for its streaming brands; and the operation of its Ad Network & Marketplace, which it claims generates over 100 million connected TV impressions per month.
“We are delighted to have completed the acquisition of DMR,” said Chris McGurk, President and CEO of Cinedigm. “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 the current conditions in the financial markets.
It also underscores Cinedigm’s strong debt-free balance sheet. We expect this acquisition to be immediately accretive and deliver multiple synergies across Cinedigm’s business. »
“Digital Media Rights is the perfect complement to Cinedigm,” added Erick Opeka, President of Networks and CSO. “Together, we will now have the largest portfolio of streaming channels and a sizeable library rivaling the biggest players in the industry. We are also onboarding a team that has extensive experience in building brands and communities that fans love it. We can’t wait to build the next big streaming company, starting today.