Digital entertainment company Cinedigm has announced the $60 million acquisition of globally positioned ad-supported streaming company Future Today Inc.
Los Angeles-based Cinedigm will pay $45 million in cash and stock worth $15 million, the announcement said. It’s buying a video platform company, positioned strongly in China and India, that operates more than 700 free channels delivered over the top, including HappyKids.tv and fawesome.tv.
Based in Mumbai, Maharashtra, India, Future Today owns and operates more than 700 content channels with more than 60 million app installs, and manages more than 200,000 film, television and digital content assets that currently receive more than 85 million video views per month.
Cinedigm said the deal will dramatically expand its online video footprint, adding 5.2 active monthly users to the 2.4 million it already had. It noted that privately held Future Today generates positive net income and cash flow. Revenue for the company increased nearly 150% to nearly $24 million last year.
“Building our stake in the rapidly surging AVOD business is a top priority for Cinedigm, and the acquisition of Future Today instantaneously transforms our company into the world’s largest provider of premium AVOD content by adding an established, fast growing and active platform that includes a high volume of some of the most highly sought-after premium OTT programming,” said Chris McGurk, Cinedigm Chairman and CEO, in a statement.
Cinedigm is in the process of exiting the cinema equipment business.
“Just as important, the technology and distribution assets we will gain will provide us with immediate launch points for expansion into China and India,” McGurk added. “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. 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.”
Future Today is majority owned by founders Alok Ranjan and Vikrant Mathur, who started the company in 2006. They plan to sign long-term employment contracts with Cinedigm after the deal closes.