Cinedigm Finalizes Share Transfer for Significant Equity Stake in Leading Chinese Entertainment Company Starrise Media
April 22 2020 - 9:15AM
Cinedigm Corp. (NASDAQ: CIDM) today announced the Company has
closed the final share transfer in connection with its previously
announced deal to acquire approximately 27% of the outstanding
equity of leading Chinese entertainment company Starrise Media
Holdings Limited (Starrise) (1616. HK) from existing holders as
part of an all-stock transaction. The Company now holds 385,542,162
shares of Starrise common equity, which it acquired for 51,501,685
shares of Cinedigm common equity.
“Now that we have fully finalized this transaction, we will move
rapidly to implement operational plans to increase Cinedigm’s
presence and leverage in both the Chinese and North American
markets,” said Chris McGurk, Cinedigm Chairman and CEO. “These are
the two biggest entertainment markets in the world, with combined
Film and Television revenues estimated to be approximately US$180
billion in 2018. Together with our fast-growing streaming business,
where we recently announced ad supported viewer growth of 108% in
the period from October 2019 to March 2020 alone, this positioning
as a OTT-oriented North America/China studio underscores the
Company’s strong growth prospects and unique competitive
leverage.”
Utilizing those unique OTT and independent content
distribution capabilities, Cinedigm has already been working to
develop strategies and forge partnerships to release entertainment
content and develop OTT channels in China while, reciprocally,
releasing Chinese content and new OTT channels in North America,
such as the recently launched Chinese language content channel,
Bambu.
Starrise’ Film/TV business segment mainly invests in film,
television and other short form content. Starrise distributes film
content theatrically and to all key media platforms in China and is
committed to significantly growing its investment in entertainment
content for the rapidly expanding Chinese theatrical and digital
marketplaces. Recent prominent film investments by Starrise
include The Wandering Earth, one of the most successful
Chinese films ever released, generating almost US $700 million at
the box office in China in 2019 and The Grandmaster of Kung
Fu, a successful internet-released action movie.
ABOUT CINEDIGM
Since inception, Cinedigm (NASDAQ: CIDM) has been a leader at
the forefront of the digital transformation of content
distribution. Adjusting to the rapidly transforming business needs
of today’s entertainment landscape, Cinedigm remains a
change-centric player focused on providing content, channels and
services to the world’s largest media, technology and retail
companies, with a strong competitive position in the two largest
entertainment markets, North America and China. Cinedigm’s Content
and Networks groups provide original and aggregated programming,
channels and services that entertain consumers globally across
hundreds of millions of devices. For more information, visit
www.cinedigm.com.
Cinedigm™ and Cinedigm Digital Cinema Corp™ are trademarks of
Cinedigm Corp. www.cinedigm.com. [CIDM-G]
Safe Harbor Statement
Investors and readers are cautioned that certain statements
contained in this document are "forward-looking" statements within
the meaning of the Private Securities Litigation Reform Act of 1995
(the "Act"). Forward-looking statements include statements that are
predictive in nature, which depend upon or refer to future events
or conditions, which include words such as "expects,"
"anticipates," "intends," "plans," "could," "might," "believes,"
"seeks," "estimates" or similar expressions. In addition, any
statements concerning completion of the transactions described in
this document, future financial performance (including future
revenues, earnings or growth rates), ongoing business strategies or
prospects, and possible future actions, which may be provided by
Cinedigm's management, are also forward-looking statements as
defined by the Act. Forward-looking statements are based on current
expectations and projections about future events and are subject to
various risks, uncertainties and assumptions about Cinedigm, its
technology, economic and market factors and the industries in which
Cinedigm does business, among other things. These statements are
not guarantees of future performance and Cinedigm undertakes no
specific obligation or intention to update these statements after
the date of this release.
Contact
Cinedigm Jill Newhouse Calcaterra 310-466-5135
jcalcaterra@cinedigm.com
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