NEW YORK, Sept. 19, 2016 /PRNewswire/ --
- The Company has signed a non-binding Term Sheet with Sun Video
Group HK Limited ("SVG") for 51% purchase of M.Y. Products, LLC
("MYP"), a video commerce and supply chain management operator, in
exchange for $50 million worth of YOD
common stock and $800k
cash.
- SVG guarantees MYP will achieve $200 million cumulative top line revenue and gain
profitability, within 12 months of closing.
- If MYP fails to meet the guarantee, then SVG shall forfeit back
to the Company the YOD common stock it received, on a pro-rata
basis. The shares will be held in escrow until the guarantee
is met.
- MYP is 100% owned by SVG, an affiliate of YOD's Chairman,
Bruno Wu, and Sun Seven Stars
("SSS").
- ADDITIONALLY, the Company is changing its corporate name to
WeCast Network, Inc., which will become effective in Q4
(specific date to be announced).
- The Company will continue to trade on the Nasdaq Stock Exchange
but under the new symbol WCST (specific date to be
announced) with no change in the Company's share structure.
YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or
"YOD" or the "Company"), a premium content Video On Demand service
provider in China, evolving into a
global, mobile-driven, consumer management platform for both
enterprises and consumers, announced today that it is changing its
corporate name to WeCast Network, Inc ("WeCast Network") to reflect
its new direction, forward-looking strategy and near-term product
and service roadmap.
The name change will be phased in across all aspects of the
business in the relatively near future, except for the legacy
video-on-demand business, which will continue to be marketed with
the original and current YOU On Demand name and logo and continue
to represent the best in video entertainment for the Chinese
market.
The YOU On Demand, Inc. corporate name will continue to be used
in press releases and corporate filings until the name, WeCast
Network, Inc., is officially deemed effective by the SEC.
Chairman Bruno Wu stated, "The
impetus surrounding the change of our corporate name to WeCast
Network, was to find a designation that could better encompass and
further establish our unique identity in the industry and to more
accurately represent our planned full portfolio of solutions and
services that are in development and aimed at both a Chinese
and global audience. This name change marks a new and
expanded focus, and it underscores our firm commitment to offering
innovative products and solutions that go well beyond our current
offering. We are investing heavily in the future of our
Company, as our industry requires an innovative approach and a
fundamentally different way of operating. Our transformation
strategy is focused on understanding and capturing data on our
consumer's desires and habits and leveraging our business partner's
technology and marketing to better monetize our world-class content
in order to deliver personalized experiences to our contracted and
addressable users and drive value for all of our stakeholders. Our
rebranding to WeCast Network represents the ecosystem we are trying
to build, coupled with our intention to leverage the infrastructure
and reach of some of our partners in order to execute on our
strategy."
Founder & Vice Chairman Shane
McMahon, commenting on the rebranding, said "Changing our
name to WeCast Network formalizes a shift in corporate strategy
that has been underway since the beginning of 2016. This new
name will be a jumping off point for a more comprehensive and
wider-reaching vision, one which has been developing and has come
very far in a short amount of time."
Earlier this year, the Company announced a plan to transform its
business into 4 distinct verticals: Pay Content, Multi-Channel
Network (MCN), Video Commerce and Marketing & Data
Management. Since then, the Company has made important
progress with each, including but not limited to:
- Pay Content Division
- Forming the GoLive TV Strategic Partnership expanding the
Company's distribution footprint globally via Smart TVs: Press
Release Link;
- Expanding strategic partnership with Huawei, increasing
distribution reach to 10 Million Addressable Users: Press Release
Link;
- Multi-Channel Network (MCN) Division
- Making a strategic investment in Frequency Networks for a 9%
stake and forming a partnership for Asian region expansion: Press
Release Link;
- Forming joint venture with Megtron Hong Kong Investment Group
(a leading Asian mobile terminal ODM or original design
manufacturer) for Indian and South Eastern Asian market expansion:
Press Release Link
- Video Commerce Division
- Partnering with B.P.O. Global to launch an E- and Video
Commerce vertical: Press Release Link;
- Marketing & Data Management Division
- Additional information/press releases coming at a future
date
Alongside the corporate name change, the Company is launching
the WeCast Supply Chain Management Platform ("WSCM") that will
reside under the Video Commerce Division. WSCM will be an
innovative platform that will directly connect Chinese
product manufacturers to a global market of big box retailers (via
various technology platforms), thereby disrupting the existing
hierarchical and multilayered model of distribution. M.Y.
Products, LLC, or MYP, will be a cornerstone of WSCM.
MYP is 100% owned by Sun Video Group HK Limited or SVG, an
affiliate of YOD's Chairman, Bruno
Wu, and Sun Seven Stars ("SSS"). Through a signed Term Sheet
with SVG, the Company is purchasing 100% of M.Y. Products Global
Limited, which owns 51% of M.Y. Products LLC, for $50 million worth of YOD common stock and
$800K cash.
Through this transaction, YOU On Demand is gaining both a M2B or
Manufacturer to Business, supply chain management operator as well
as a M2C or Manufacturer to Consumer, video commerce operator, both
of which will offer a full suite of pre-and post-sale services
including administration, product management, logistics, financing,
branding, licensing support and marketing for Chinese manufacturers
exporting to the U.S. MYP assists Chinese manufacturer's
revenue and profitability by reducing exorbitant middlemen costs
that exist today in the distribution chain and allowing some of
those savings to be reapportioned to brand development and
design.
SVG guarantees that MYP will achieve $200 million in cumulative revenues and gain
profitability, within 12 months of closing the
transaction. If MYP fails to meet the guarantee, then SVG
shall forfeit back to the Company the YOD common stock it received,
on a pro-rata basis. The shares will be held in escrow until
the guarantee is met.
This deal with MYP is contingent upon, among other things, both
a fairness opinion and third-party valuation.
In addition, each party's obligations to consummate the
transaction will be conditioned upon, amongst other things: 1. The
completion of due diligence satisfactory to each party; 2. Each
party receiving all required approvals (board, shareholder,
regulatory, etc.); 3. Executions of a formal agreement containing
such provisions as are customary for transactions of this
nature.
About YOU On Demand Holdings, Inc.
(http://corporate.yod.com)
YOU On Demand (NASDAQ: YOD) is leveraging and optimizing its
current operations as a premium content Video On Demand service
provider in China to evolve into a
global, B2B2C, mobile-driven, consumer management platform for both
enterprises and consumers. By aiming to establish the world's
premier multimedia, social networking and e-commerce-enabled
network with the largest global effective connected user base, YOU
On Demand, through this expanded, cloud-based, ecosystem of
connected screens combined with strong partnerships with leading
global providers, will be capable of delivering a vast array of
YOD–branded products and services to enterprise customers and
end-use consumers - anytime and anywhere, across
multiple platforms and devices.
YOU On Demand has content distribution agreements in place
with many of Hollywood's top studios including Disney Media
Distribution, Paramount Pictures, NBC Universal and Twentieth
Century Fox Television Distribution, Miramax, as well as a broad
selection of the best content from Chinese filmmakers. In
addition, the Company has governmental partnerships and licenses as
well as numerous JV partnerships and strategic cooperation
agreements with an array of distribution and content partners in
the global new media space. YOU On Demand is headquartered in both
New York, NY and Beijing, China.
Safe Harbor Statement
This press release contains certain statements that may
include "forward looking statements." All statements other than
statements of historical fact included herein are "forward-looking
statements." These forward looking statements are often identified
by the use of forward-looking terminology such as "believes,"
"expects" or similar expressions, involve known and unknown risks
and uncertainties. Although the Company believes that the
expectations reflected in such forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. You should not
place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. The Company's
actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of
factors, including those discussed in the Company's periodic
reports that are filed with the Securities and Exchange Commission
and available on its website (http://www.sec.gov). All
forward-looking statements attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by
these factors. Other than as required under the securities laws,
the Company does not assume a duty to update these forward-looking
statements.
CONTACT:
Jason
Finkelstein
YOU On
Demand
212-206-1216
jason.finkelstein@yod.com
@youondemand
corporate.yod.com
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SOURCE YOU On Demand Holdings, Inc.