October 17, 2013
Cinedigm to Acquire Gaiam, Inc.s Entertainment Unit, a Multi-Platform Content Licensor and Distributor Accretive acquisition positions Cinedigm as the market leader for independent film, TV and digital content distribution for every key entertainment platform, retailer and device, across theatrical, the home and mobile
$51.5 million acquisition, projected to generate more than $15 million of EBITDA annually, is expected to close next week
CENTURY CITY, Calif. & NEW YORK--(BUSINESS WIRE)-- Cinedigm Corp. (NASDAQ: CIDM) (Cinedigm or the Company) today announced it has agreed to acquire Gaiam, Inc.s (NASDAQ: GAIA) entertainment unit, known as GVE, a leading distributor of home entertainment brands and content, for $51.5 million. Gaiam will retain its health and fitness media business. Cinedigms acquisition of GVE positions the Company as the market leader for independent film, TV and digital content distribution on every key entertainment platform, retailer and device across theatrical, the home and mobile. This accretive acquisition is expected to add more than $15 million of annual EBITDA to Cinedigms financial results.
When combined, Cinedigm and GVE will have:
A market position as the largest aggregator and distributor of independent content and the fourth largest distributor of non-theatrical DVDs and Blu-Ray discs in the U.S.
Annual retail sales exceeding $320 million from both physical products and digital sales;
Exclusive, multi-year relationships with a wide range of brand name content suppliers, including WWE, NFL, Hallmark, National Geographic, Discovery, Scholastic and The Jim Henson Company;
Direct sales and marketing relationships with almost every major physical and digital retailer, including Wal-Mart, Target, iTunes, Netflix and Amazon;
A huge library of digital distribution rights for independent films, TV series and other content that includes more than 32,000 titles and episodes
The largest physical retail footprint of any independent studio distributor in the United States, with products sold through over 60,000 retail locations; and,
Strong, experienced corporate and operating management bolstered by the addition of many key GVE employees.
Cinedigm has agreed to acquire GVE for $51.5 million, subject to working capital adjustments. The acquisition will be financed through a combination of: (i) a new $55 million senior-secured credit facility arranged and led by Soci t G n rale Corporate and Investment Banking that includes a $25 million 3-year term loan funded at closing and an up to $30 million revolving credit facility of which $15 million will be drawn at closing; (ii) an up to $5 million subordinated 5-year loan facility; (iii) $3 million of restricted Cinedigm stock of which $1 million was issued to Gaiam and $2 million was purchased by an existing shareholder; (iv) an up to $13.0 million underwritten public offering of common stock, inclusive of an up to $1.5 million over-allotment, with B. Riley & Co., LLC and National Securities Corporation, a wholly owned subsidiary of National Holdings, Inc. (OTCBB:NHLD), acting as co-lead managers. The acquisition is expected to close October 21, 2013. Blackstone Advisory Partners L.P. acted as financial advisor to the Company in connection with the acquisition of GVE and Merriman Capital acted as capital markets advisor for the equity offering. Please see our separate press release on the underwritten public offering.
This acquisition of GVE gives Cinedigm immediate scale and leverage across the entire entertainment value chain. The combination of GVEs deep stable of consumer-friendly brands and unique direct retail relationships paired with Cinedigms tremendous strength in the rapidly evolving digital distribution space as well as our theatrical releasing and over-the-top network businesses -- creates a powerful and game-changing entity poised to take full advantage of the content distribution revolution, said Cinedigm Chairman and CEO Chris McGurk. This accretive acquisition fully complements our existing businesses, while providing immediate scale, EBITDA, cash flow, cost and revenue synergies, strong new management and tremendous opportunities for further growth.
Adam Mizel, Cinedigm Chief Operating Officer and CFO, added: Our efforts over the last 2 years to transform Cinedigm and completely refinance our balance sheet were designed in part to prepare us for a smart, accretive acquisition like GVE that would leverage our strong position in the digital entertainment revolution and dramatically accelerate our growth strategy. The $51.5 purchase price represents a multiple of approximately 3.3 times GVEs 2013 estimated adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). We are particularly appreciative of the support we have received from our long term lead lender Soci t G n rale as well as the support in our equity offering from many of our largest shareholders and our underwriting partners and advisors at B. Riley, National Securities and Merriman Capital
Effective immediately GVE President Bill Sondheim will become President of Cinedigms Entertainment Group (CEG), and will report to Chris McGurk and Adam Mizel.
Bill Sondheim added, I am excited to be joining Cinedigm as the new President of our combined entertainment operations. I have known Chris for many years, having previously worked for him at Polygram Entertainment, and look forward to growing Cinedigms entertainment business with him and the entire Cinedigm team. Cinedigms industry-leading digital platform, film releasing business and emerging networks initiative, enhanced by GVEs direct physical goods, digital platform, retail relationships and brands, will make CEG an even more powerful and unique competitor in our evolving industry.
Second Half Fiscal 2014 Outlook
The combin
Most recent headlines
09/11/2025
Dalet today announced a transformative leap forward for media operations: Agentic Artificial Intelligence (AI) that unifies the Dalet ecosystem under one natura...
23/10/2025
The new solution is industry's first multi-channel receiver available for L3Harris's resilient tactical high-frequency data waveforms....
23/10/2025
NEW YORK During a high-profile session at NAB Show New York, new survey data was shared that revealed significant public concern over artificial intelligence (A...
23/10/2025
BELLEVUE, Wash. and NEW YORK Fox Weather has tapped T-Mobile as its preferred communications provider and said all of its reporters will be equipped with SuperM...
23/10/2025
RASTATT, Germany Broadcast and media workflow technology vendor Lawo has tapped Mike Wright as VP of sales, North America....
23/10/2025
MONTREAL European cultural broadcaster ARTE has selected Grass Valley LDX 135 cameras and Creative Grading solution as part of its move from SDI/1080i to a nati...
23/10/2025
CINCINNATI The E.W. Scripps Company has named Daniel Parsons as its new chief information security officer, effective Oct. 20....
23/10/2025
ALAMEDA, Calif. Northern Michigan broadcaster WWTV recently completed a major IP-based upgrade that connects its new Traverse City studio with its control room ...
23/10/2025
A deadline is looming for a new carriage deal between Verizon's Fios TV and Nexstar, with both Verizon and the pay TV-backed American Television Alliance bl...
23/10/2025
NEW YORK During a high-profile session at NAB Show New York, new survey data was shared that revealed significant public concern over artificial intelligence (A...
23/10/2025
BELLEVUE, Wash. and NEW YORK Fox Weather has tapped T-Mobile has as its preferred communications provider and announced that all Fox Weather reporters are being...
23/10/2025
PBS will use generative AI from Amazon Web Services to provide enhanced search results to viewers on the PBS App and PBS LearningMedia platforms, the network an...
23/10/2025
Back to All News
The Resurrected' Marks First Chinese-Language Series to L...
23/10/2025
RT is today publishing a statistical summary from the Register of External Activities for the second quarter of 2025.
The RT Register of External Activities ...
23/10/2025
Series three of the award winning, hit comedy entertainment series The 2 Johnnies Late Night Lock In is back on your screens, celebrating the very best of all t...
23/10/2025
Performances by Michael Flatley, Andy Irvine, Cuckoo's Nest, Foster and Allen and more
Friday 24 October, 8pm on RT One and RT Player
Fleadh Cheoil re...
23/10/2025
The nights grow longer and the shadows get bolder with Vampire The Masquerade: B...
22/10/2025
Prime Video Inks Deal To Present NFL Black Friday Game Worldwide By SVG Staff
Wednesday, October 22, 2025 - 10:06 am
Print This Story | Subscribe
Story ...
22/10/2025
NBA Tip-Off: ESPN Goes 1080p HDR End-to-End, Flipping HDR Switch on REMI and REM...
22/10/2025
FloSports Empowers Division II, III Athletic Departments With Turnkey Production...
22/10/2025
Wall Street Video Summit Debuts, Bringing Together 200 Financial Enterprise Vide...
22/10/2025
Dueling Pianos: International Chopin Piano Competition Is as Competitive as a Ba...
22/10/2025
In 1995, a young Colombian artist released an album that would change Latin pop ...
22/10/2025
Over the past few months, a photovoltaic system has been installed on a three-he...
22/10/2025
The Orion spacecraft for NASA's Artemis II mission is stacked on the Space Launch System (SLS) rocket in High Bay 3 of the Vehicle Assembly Building at Kenn...
22/10/2025
L3Harris' Hybrid SATCOM is resilient by design, offering path diversity that eliminates vulnerabilities by routing data across the best available networks i...
22/10/2025
WASHINGTON, D.C. Organizers of NAB Show New York said they are expecting more than 12,000 registered attendees from about 100 countries along with 260 exhibitor...
22/10/2025
WASHINGTON, D.C The organizers of The 2025 NAB Show New York have announced that they are expecting more than 12,000 registered attendees from about 100 countr...
22/10/2025
Masque Sound, a leading theatrical sound reinforcement, installation and design company, supplied an extensive gear package of professional-grade equipment for ...
22/10/2025
Lightware, a global leader in signal management and AV connectivity solutions, is seeing strong market momentum for the UCX-3x3-TPX-RX20, a compact transmitter-...
22/10/2025
MELVILLE, N.Y. Chyron has released PAINT 10.2, the latest update for its telestration platform, adding support for SMPTE ST 2110 IP workflows, expanding brandin...
22/10/2025
WASHINGTON Run3TV today said NBCUniversal is joining as an investor in the ATSC 3.0 Framework Authority, which develops the Run3TV NextGen TV application platfo...
22/10/2025
ATLANTA swXtch.io will feature two new networking solutions extending the company's reach across more cloud and on-prem workflows at NAB Show New York, set ...
22/10/2025
The Warner Bros. Discoverys HBO Max streaming services has increased prices for all its streaming tiers effectively immediately for new customers. Existing cust...
22/10/2025
LOS ANGELES OpenDrives has signed a new distribution partnership deal with Versatile Distribution Services (VDS) to strengthen its channel and streamline how it...
22/10/2025
WASHINGTON, D.C The organizers of The 2025 NAB Show New York have announced that they are expecting more than 12,000 registered attendees from about 100 countr...
22/10/2025
Samora Pinderhughes Brings Immersive Sound to Berklee's Signature Series The artist and composer, who's worked with Herbie Hancock, Robert Glasper, Co...
22/10/2025
BMI Day at Berklee Celebrates Composer Fil Eisler and Awards Scholarship to Stud...
22/10/2025
October 22nd, 2025 TRIBECA ANNOUNCES STAR-STUDDED LINEUP OF MEMBERSHIP EVENTS F...
22/10/2025
Rohde & Schwarz and TRUMPF cooperate in drone defense Rohde & Schwarz and TRUMPF partner to deliver a comprehensive drone defense solution combining Rohde & S...
22/10/2025
European Broadcaster Upgrades To Grass Valley's NativeIP LDX 135 Cameras And...
22/10/2025
Everyone Gets a Better Deal on Verizon with New FOX One Perk The $15 FOX One streaming service perk is yet another way Verizon continues to add savings for cu...
22/10/2025
First Look Hidden Assets Series 3
Premieres on 9th November 9:30pm on RT One & RT Player
WATCH HERE Promo Link: Hidden Assets Series 3 | RT
The Crimin...
21/10/2025
NAB New York 2025: Although AES Show Is on Its Own, Audio Will Be a Major Part o...
21/10/2025
NAB New York 2025: Business of Broadcast and Media,' Future of Content'...
21/10/2025
SVG All-Stars: Ethan Folz, Senior Director, Digital Operations and Quality of Ex...
21/10/2025
NBA on NBC/Peacock: Livestream Offers Graphic Overlays, Predictive Gaming, Ancil...
21/10/2025
NBA on NBC/Peacock: At the Front Bench With Producer Frank DiGraci and Director ...
21/10/2025
NBA on NBC/Peacock: NBC Sports, NEP Build Ultra-Flexible Production Plan That Se...
October 17, 2013
