Acquisition of 1091 Pictures Completed by Chicken Soup for the Soul Entertainment

Rhea-AI Summary

Chicken Soup for the Soul Entertainment, Inc. (CSSE) has successfully completed its acquisition of 1091 Media, LLC's distribution business, 1091 Pictures. The transaction involved a total consideration of approximately $15.6 million, which was paid in cash, Series A perpetual preferred stock, and Class A common stock. This acquisition aims to enhance the company's distribution capabilities within the streaming advertising-supported video-on-demand (AVOD) market.

Positive

• Acquisition of 1091 Pictures potentially strengthens distribution capabilities within the AVOD market.
• Transaction total of approximately $15.6 million could enhance overall asset value.

Negative

• Integration challenges might arise from the acquisition of 1091 Pictures.
• Financial strain from the substantial cash outflow and stock issuance might affect liquidity.

COS COB, Conn., March 07, 2022 (GLOBE NEWSWIRE) -- Chicken Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE) (“the Company”), one of the largest operators of streaming advertising-supported video-on-demand (“AVOD”) networks, today announced the closing of the previously announced acquisition of the assets of 1091 Media, LLC comprising its distribution business known as “1091 Pictures”. The purchase price was approximately $15.6 million in cash, Series A perpetual preferred stock and Class A common stock.

Salem Partners acted as the exclusive financial and investment banking advisor to 1091 Pictures, with Stephen Prough and Ivar Combrinck leading the process and negotiations. Lisa Weiss from Chatillon Weiss acted as exclusive legal advisor to 1091 Pictures. Brian Ross from Graubard Miller acted as exclusive legal advisor to Chicken Soup for the Soul Entertainment, Inc.

ABOUT CHICKEN SOUP FOR THE SOUL ENTERTAINMENT
Chicken Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE) (the “Company”) operates streaming video-on-demand networks (VOD). The Company owns Crackle Plus, which owns and operates a variety of ad-supported and subscription-based VOD networks including Crackle, Chicken Soup for the Soul, Popcornflix, Popcornflix Kids, Truli, Pivotshare, Españolflix and FrightPix. The Company also acquires and distributes video content through its Screen Media subsidiary and produces original video content through the Chicken Soup for the Soul Television Group. Chicken Soup for the Soul Entertainment is a subsidiary of Chicken Soup for the Soul, LLC, which publishes the famous book series and produces super-premium pet food under the Chicken Soup for the Soul brand name.

FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are statements that are not historical facts. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of management and are not predictions of actual performance. Such assumptions involve a number of known and unknown risks and uncertainties, including but not limited to our core strategy, operating income and margin, seasonality, liquidity, including cash flows from operations, available funds, and access to financing sources, free cash flows, revenues, net income, profitability, stock price volatility, future regulatory changes, price changes, the ability of the Company’s content offerings to achieve market acceptance, the Company’s success in retaining or recruiting officers, key employees, or directors, the ability to protect intellectual property, the ability to complete strategic acquisitions, the ability to manage growth and integrate acquired operations, the ability to pay dividends, regulatory or operational risks, and general market conditions impacting demand for the Company’s services. For a more complete description of these and other risks and uncertainties, please refer the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 31, 2021, and for further information regarding our recent acquisition of the Sonar library and related assets, please see our Current Reports on Form 8-K, as amended, filed with the SEC on May 27, 2021 and July 1, 2021. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

INVESTOR RELATIONS
Taylor Krafchik
Ellipsis
CSSE@ellipsisir.com 
646-776-0886

MEDIA CONTACTS
Kate Barrette
RooneyPartners LLC
kbarrette@rooneypartners.com
(212) 223-0561

FAQ

What is the significance of Chicken Soup for the Soul's acquisition of 1091 Pictures?

The acquisition enhances Chicken Soup for the Soul's distribution capabilities in the AVOD space, potentially increasing revenue opportunities.

How much did Chicken Soup for the Soul pay for 1091 Pictures?

The total consideration for the acquisition was approximately $15.6 million in cash, Series A preferred stock, and Class A common stock.

What are the expected benefits of the 1091 Pictures acquisition for CSSE?

The acquisition is expected to strengthen CSSE's position in the competitive AVOD market, providing synergies in content distribution.

What risks are associated with the acquisition of 1091 Pictures by CSSE?

Integration challenges and potential financial strain from the acquisition costs may impact CSSE's liquidity and operational performance.

When was the acquisition of 1091 Pictures completed?

The acquisition was announced and closed on March 7, 2022.