Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

TICKERS: CIDM

Cinedigm Shares Soar 170% Higher on Global Distribution Deal

Share on Stocktwits

Source:

Shares of Cinedigm Corp. reached a new 52-week high after the company reported that it is partnering with the world's largest smart TV solutions provider, Vewd, for global over-the-top channel distribution.

Over the top (OTT) entertainment networks and content provider Cinedigm Corp. (CIDM:NASDAQ) today announced "a partnership with Vewd, the world's largest Smart TV OTT software provider, offering Cinedigm's portfolio of streaming entertainment networks on Vewd-enabled devices worldwide." Under the terms of the agreement, Cinedigm's networks will now be available on an installed base of greater than 300 million Smart TVs and connected devices including Sony, Samsung, Skyworth, Hisense, Philips and TiVo brands and others. As part of the partnership arrangement, Cinedigm's networks will also be made available on the more than 40 million new Vewd-powered devices shipped each year.

The company reported that the partnership extends scaling of its offerings in the fast-growing ad-supported video on demand market and further extends it reach and distribution worldwide across top selling OEMs and hardware manufacturers with a special emphasis on the E.U., Latin America and Asia.

The firm indicated that the first Cinedigm channels planned for the initial Vewd rollout are Comedy Dynamics, The Bob Ross Channel and Docurama.

The company's General Manager of Digital Networks Tony Huidor commented, "Vewd is the perfect partner for Cinedigm, as both companies have a common goal to entertain viewers through high-quality programming, now more than ever, as more viewers seek out free alternatives to established Pay-TV services...Vewd's worldwide reach presents an invaluable opportunity for Cinedigm by allowing us to grow our distribution footprint even further as the ad-supported market continues to mature internationally."

Cinedigm Networks' President Erick Opeka added, "With global ad-supported OTT revenues surging to $53 billion globally over the next five years, our focus is on rapidly expanding our distribution footprint to maximize growth...Vewd helps us dramatically expand the viewer base for our rapidly growing portfolio of OTT networks, which we expect to double over the next 18 months."

The firm stated that Vewd is the world's largest smart TV OTT software provider which connects consumers to content by making OTT possible on nearly 50 million connected devices annually.

Cinedigm is based in Los Angeles, Calif., and is an independent entertainment studio focused on the digital transformation of content distribution. The company known for its film/TV/digital production, digital cinema, OTT channels, and content and marketing distribution. The firm provides content, channels and services to the world's largest media, technology and retail companies.

Cinedigm started off the day with a market capitalization of around $134.6 million with approximately 102.7 million shares outstanding. CIDM shares opened 235% higher today at $4.38 (+$3.07, +234.35%) over yesterday's $1.31 closing price and reached a new 52-week high price this morning of $6.00. The stock has traded today between $3.15 and $6.00 per share and is currently trading at $3.55 (+$2.24, +170.99%).

[NLINSERT]

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.





Want to read more about Special Situations and Technology investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe