Content distributor Cinedigm Corp. struck a deal to acquire over-the-top platform Future Today Inc. for $45 million in cash and $15 million in Cinedigm common stock.
The deal will bring together Future Today's 5.2 million monthly active users with Cinedigm's 2.4 million, creating a combined OTT footprint of more than 7.6 million monthly active users, Cinedigm said in a press release. Future Today owns and operates more than 700 content channels and manages more than 200,000 film, TV and digital assets in a range of categories. The company's cloud-based technology and ad-based monetization platform manages OTT services for more than 350 content owners, distributors and media companies.
Future Today co-founders Alok Ranjan and Vikrant Mathur will continue to lead and operate the company as co-presidents and will sign long-term employment agreements with Cinedigm upon deal closing.
The transaction is expected to close in the second calendar quarter of 2019 and is subject to customary closing conditions.
"The acquisition of Future Today instantaneously transforms our company into the world's largest provider of premium AVOD [ad-supported video on demand] content by adding an established, fast growing and active platform that includes a high volume of some of the most highly sought-after premium OTT programming," said Cinedigm Chairman and CEO Chris McGurk in a statement. "The technology and distribution assets we will gain will provide us with immediate launch points for expansion into China and India."