Cinedigm announced Friday that it has entered into a definitive agreement to buy AVOD channel network and OTT platform Future Today for $45 million in cash and $15 million in Cinedigm common stock.
Cinedigm said the deal will increase its OTT footprint to more than 7.6 million monthly active users and 67 million total app installs. According to a news release, Future Today generates positive net income and an estimated $23.9 million in full-year revenues for 2018.
Future Today owns and operates more than 700 content channels and manages more than 200,000 film, television and digital content assets that it says currently receive more than 85 million video views per month. The company's ad-supported channels include Fawesome.tv, which is focused on general entertainment movies and television shows, and HappyKids.tv, a free kid’s channel providing edutainment.
Future Today also owns cloud-based technology and an ad-based monetization platform that manages OTT services for more than 350 content owners, producers, distributors and media companies including Filmrise and WatchFreeFlix.
Following the acquisition, 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.
Chris McGurk, Cinedigm chairman and CEO, said that building out an AVOD business is a top priority for the company.
“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,” said McGurk in a statement. “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.”