Cinedigm To Acquire Digital Comic Book Service, ComicBlitz, Featuring 10,000 Digital Comics From More Than 30 Premium Comic Book Publishers
Accretive Deal Will Accelerate Cinedigm’s Global Digital Expansion
LOS ANGELES, Nov. 28, 2018 (GLOBE NEWSWIRE) -- Cinedigm (NASDAQ: CIDM) announced today an agreement to acquire the digital comic book service ComicBlitz, which will provide access to approximately 10,000 digital comic books, with more than 175,000 pages of content from a growing network of 30+ publishers (including 5 top 20 publishers). ComicBlitz content will be distributed globally as a licensed offering for mobile carriers, OTT providers and other media companies. It will also be integrated with Cinedigm’s existing and planned OTT services, including the fandom lifestyle network CONtv. Cinedigm expects that the acquisition will close before the end of the year.
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Cinedigm plans on rapidly enhancing ComicBlitz’s content and services offering by leveraging Cinedigm’s forthcoming, next-generation technology platform and expects to service global distribution of the ComicBlitz content and platform offerings alongside Cinedigm’s existing footprint of nine OTT channel offerings.
From a business perspective, the transaction is expected to generate revenues through content licensing, subscription and advertising revenues, new distribution platform partnerships and by accelerating global expansion of Cinedigm’s OTT business.
Cinedigm expects the acquisition will be accretive within the first quarter following closing, pending certain license deals currently in negotiation. The deal could be expected to generate more than $5 million in incremental annual digital revenues within 18-24 months after closing, if new platform and licensing agreements related to this acquisition are consummated.
This deal will support Cinedigm’s strategy to provide high quality turn-key offerings to third party platforms on a global scale through acquisition and partnerships. It will also provide a deep portfolio of quality comic book offerings that significantly broadens the Company’s content portfolio for highly sought after fandom audiences worldwide.
The worldwide digital comic book and graphic novel market is estimated at over $1 billion in annual sales.
ComicBlitz founder and CEO Jordan Plosky will join Cinedigm’s Digital Networks team to help rapidly execute this strategy, with a focus on further expanding the Digital Networks stable of digital assets and the expansion of ComicBlitz’s global distribution footprint.
Launched in 2015, ComicBlitz has a distribution footprint of over 133 countries, with key penetration in North America and major territories including the United Kingdom, Australia, India, Mexico, Brazil and Germany. ComicBlitz delivers unprecedented global access to a wide range of popular titles such as Transformers, Star Trek, Judge Dredd, Bloodshot, Bob’s Burgers, Army Of Darkness, Vampirella, Green Hornet, KISS, The Shadow, The Spirit, and 30 Days Of Night, among many others. Featured publishers include IDW, Valiant Comics, Dynamite Entertainment, Zenescope, Lion Forge, and more.
Available on multiple devices, ComicBlitz allows subscribers to enjoy complete comic series, compile their own “bookshelves” and custom lists, rate and review their favorite issues, and zoom in on each page to become fully immersed in every last inch of content detail.
“This acquisition will provide additional content rocket fuel to further accelerate our digital revenue growth,” said Chris McGurk, Cinedigm chairman and CEO. “Targeted at the key and growing fandom demographic, we are confident that this accretive deal will generate a strong IRR while it propels our business forward by dramatically expanding and strengthening our content and channel offerings across the fast-growing worldwide OTT ecosystem. We are also thrilled to have Jordan Plosky join the Cinedigm team to further accelerate our expansion. This reinforces our strong momentum in the digital content business, coming on the heels of recently announced platform distribution agreements for our OTT networks with major players such as Xumo, Roku, Samsung, Tubi, Vizio, Comcast and others that continue to quickly expand our audience reach and accelerate digital revenue growth.”
“From blockbuster films to hit television series, comic books are at the heart and soul of the modern entertainment landscape and passionately loved by consumers worldwide,” said Erick Opeka, President of Cinedigm Digital Networks. “ComicBlitz’s product exemplifies exactly what we are accomplishing at Cinedigm – providing compelling digital products to global customers that speak to their passions. We’re thrilled to add ComicBlitz to our growing roster of content and service offerings, and we look forward to bringing Jordan’s relentless entrepreneurial spirit to Cinedigm.”
“I am beyond excited to join forces with Cinedigm as part of this acquisition,” said Plosky. “Cinedigm gives ComicBlitz unprecedented support and an incredible opportunity to reach a large and enthusiastic audience, which is invaluable and extremely rare for a digital comic book company to receive. I truly believe this is a milestone moment not only for comic readers, but for the comics industry as a whole.”
In addition to CONtv, Cinedigm currently operates the factual network Docurama, gaming lifestyle network Wham Network, family-focused Dove Channel, kids-focused DoveKids, combat-sports network CombatGO, and the forthcoming networks Hallypop and Bambu.
About CIDM:
Cinedigm (CIDM) has been at the forefront of the digital transformation of entertainment. Today, Cinedigm continues that mission by providing content, channels and services to the world’s largest media, technology and retail companies. Our content aggregation and distribution services power the world’s leading digital platforms and retailers, and Cinedigm’s Digital Networks group provides entertainment channels and services that delight consumers globally across hundreds of millions of devices. For more information, visit www.cinedigm.com.
Press Contact for CIDM:
Jill Calcaterra/310-466-5135
Cinedigm
jcalcaterra@cinedigm.com
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/2d09bd70-abec-4344-b5a2-6310b2199c3a
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