chicken Soup for the Soul (CSS) leisure has inked a definitive deal to purchase Pivotshare, a global SVOD provider, for $4.35 million.
Pivotshare points multiple on-line channels comprising 28,000 hours of programming that spans such categories as music, activities, religion, arts and lifestyle, way of life and household. The community has about 25,000 paid subscriptions. This acquisition will mark the launch of CSS enjoyment's SVOD enterprise.
"This accretive acquisition of Pivotshare launches us into the subscription VOD area, vastly accelerating our business plan," remarked William J. Rouhana, Jr., chairman and CEO of CSS enjoyment. "This multi-channel on-line network comes with pre-latest content, plenty of which matches with the bird Soup for the Soul company."
"we're overjoyed to become part of the chicken Soup for the Soul enjoyment ecosystem," cited Adam Mosam, founder of Pivotshare. "CSS amusement is strategically capitalizing on disruption within the enjoyment business, and Pivotshare will support speed up the company's increase and presence in the subscription-based mostly VOD business while additionally bringing a right expertise crew to the enterprise."
"After our recent perpetual preferred stock providing, we determined to present our sequence A preferred shares as an acquisition currency to the Pivotshare shareholders, and that they agreed to settle for $3.35 million of the $four.35 million buy expense (apart from closing prices) within the variety of our perpetual favourite inventory," stated Scott W. Seaton, vice chairman at CSS entertainment. "The steadiness of the purchase expense is $257,000 in cash and seventy four,235 shares of CSS leisure average.
"Pivotshare is anticipated to generate approximately $1 million per yr in charge savings for CSS amusement, which is a 23 % return on our funding annually. the usage of favourite stock as an acquisition currency with a 9.75 percent coupon and focusing on accretive acquisitions like this one will greatly and impulsively develop our business whereas adding to our cash stream."
"The acquisition of Pivotshare secures CSS enjoyment's operations in the subscription VOD house sooner than projected, and enables us to install our already owned content material libraries as subscription VOD services at once and at little to no can charge," delivered Rouhana.