Cinedigm Corp has entered into a definitive agreement to acquire Future Today, an OTT platform and AVOD channel network, for $45 million in cash and $15 million in Cinedigm common stock.
The acquisition increases Cinedigm’s OTT footprint to over 7.6 million monthly active users and 67 million total app installs and is expected to be immediately accretive. Future Today generates positive net income and healthy cash flow, with revenues increasing by almost 150% in calendar year 2018 to an estimated $23.9 million in full year revenues.
Future Today Inc 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 in a variety of categories including entertainment, movies, food & lifestyle, animation, and kids.
Future Today has several proprietary brands which have become market leaders in the ad-supported marketplace, headlined by flagship channels Fawesome.tv focused on general entertainment movies & television shows, and HappyKids.tv, the #1 free kid’s channel providing age-specific edutainment in the connected TV market.
Future Today’s cloud-based technology and ad-based monetisation platform manages OTT services for more than 350 content owners, producers, distributors and major media companies helping them launch and monetize complex Connected TV channels across devices in a matter of days. Key partners such as Filmrise, WatchFreeFlix, and several others have experienced major growth in watch time and user engagement since moving to the Future Today OTT platform.
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 upon deal closing.
The transaction is expected to close in the second calendar quarter of 2019 and is subject to customary closing conditions.
