Cinedigm March 15 announced it has entered into a definitive agreement to acquire Future Today, one of the largest ad-supported VOD networks, for $45 million in cash and $15 million in Cinedigm common stock.
The acquisition increases Cinedigm’s over-the-top video footprint to over 7.6 million monthly active users and 67 million total app installs.
The Los Angeles-based home entertainment distributor said Future Today, which 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,generated about $23.9 million in revenue in 2018.
Future Today brands include Fawesome.tv, focused on general entertainment movies & television shows, and HappyKids.tv, providing age-specific edutainment in the connected TV market.
Alok Ranjan and Vikrant Mathur, co-founders of Future Today, will continue to lead the subsidiary as co-presidents, entering into long-term employment agreements with Cinedigm upon the deal closing.
“Building our stake in the rapidly surging AVOD business is a top priority for Cinedigm, and the acquisition instantaneously transforms our company into the world’s largest provider of premium [ad-supported] content,” Chris McGurk, chairman/CEO of Cinedigm said in a statement.
Future Today’s cloud-based technology and ad-based monetization platform manages OTT services for more than 350 content owners, producers, distributors and major media companies helping them launch and monetize connected TV channels across all devices.
“Alok and Vikrant have built Future Today into one of the most respected and fastest growing companies monetizing video content today,” said Erick Opeka, president of Cinedigm Digital Networks. “Their entrepreneurial spirit and deep knowledge of the video ad space, combined with Cinedigm’s content and relationships, will be a formidable and compelling combination in the rapidly growing AVOD segment.”
The transaction is expected to close in the second calendar quarter of 2019 and is subject to customary closing conditions.