Cinedigm Agrees To Buy New Video Group

After forging a partnership in January to buy distribution rights for independent films, Cinedigm says it will pay at least $14M to buy distribution firm New Video Group outright. The combination will “create a new full service end-to-end digital releasing studio” and enable Cinedigm “to acquire and distribute independent films and specialty content both theatrically and through digital, mobile and home media platforms,” the companies said. New Video co-Presidents Steve Savage and Susan Margolin were named co-Presidents of Cinedigm’s Entertainment Group, which will include their company plus Cinedigm’s theatrical marketing and booking services. They’ll report to Cinedigm CEO Chris McGuirk, who’s engaged in an ambitious effort to boost the company’s output of digitally distributed alternative entertainment for movie theaters. In conjunction with this announcement, Cinedigm says that it will underwrite a public offering of 6M of its Class A shares. Cinedigm’s stock spiked in early February but is down nearly 24% over the last 12 months. Here’s the release about the New Video deal: (more…)

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