Chicken Soup for the Soul Entertainment to acquire 1091 Pictures

Chicken Soup for the Soul Entertainment Inc. agreed to acquire 1091 Media LLC's content distribution business 1091 Pictures in a cash-and-stock deal worth about $15.6 million.

The purchase price includes $8 million in cash, $2 million in newly issued shares of Series A perpetual preferred stock worth $25 per share, and 375,000 shares of Class A common stock at a per-share price of $14.80, a March 2 news release said.

Chicken Soup for the Soul Entertainment expects the acquisition to about double the size of its content catalog, with 1091 Pictures' roster of about 4,000 TV series and movies as well as an annual pipeline of more than 350 titles. The acquisition also includes free ad-supported TV and advertising-based video-on-demand channels with about 1 billion ad impressions per year.

Deal completion is expected in early to mid-March, subject to certain closing conditions. Following the transaction, 1091 Pictures' acquisition and distribution team will be combined with Screen Media Ventures LLC, a Chicken Soup for the Soul Entertainment-owned company that supplies content to the Crackle Plus streaming services, while 1091 Pictures' channel business will be folded into the Crackle Plus networks.

Salem Partners LLC is 1091 Pictures' exclusive financial and investment banking adviser on the deal, with Chatillon Weiss LLP as exclusive legal adviser. Chicken Soup for the Soul Entertainment hired Graubard Miller as its exclusive legal adviser.