Cinedigm Corp., an entertainment company based in Los Angeles, has recently inked a definitive stock purchase deal to acquire almost 29% of the outstanding equity of renowned Chinese entertainment firm Starrise Media Holdings Limited (Starrise) from existing shareholders.
As a consideration, the firm has agreed to offer sellers a sum of 54,850,103 shares of its Class A Common stocks that are valued at $0.001 per share. Reportedly, the Stock Purchase deal involves specific conditions to closing such as the firms need to obtain approval from its applicable lenders, regulatory authorities and stockholders.
Moreover, Cinedigm intends to bag approval for Share Acquisition from the majority stockholder of the company.
Speaking on the move, Chris McGurk, Chairman and CEO, Cinedigm, said that after signing a definitive agreement to buy 29% stake of Starrise, the company is planning to finalize this transaction while creating its operational plans to expand its presence. This would help them spread across the North American and Chinese markets.
McGurk added that both China and North America mark as few of the largest entertainment markets around the globe, with cumulative Television and Film revenues totaling to nearly US$180 billion in 2018. After this acquisition, Cinedigm would be able to successfully grow its OTT streaming and content distribution businesses in both the regions.
Prior to this news, Cinedigm came into limelight when it acquired 7Heaven Production and Cinetel Films’ action thriller movie dubbed ACCELERATION which was planned to release in few select theatres as well as on OTT, DVD, and Blu-ray.
For the record, Cinedigm is one of the leading firms striving towards digital transformation of content distribution. By constantly adjusting to the transforming business needs of the entertainment sector, Cinedigm remains an essential player focused on offering content, services and channels to global largest media, retail and tech firm.
Source Credit: http://investor.cinedigm.com/news-releases/news-release-details/cinedigm-signs-definitive-stock-purchase-agreement-acquire-29