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September 23, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

Chicken Soup for the Soul Entertainment acquires SVOD service Pivotshare

Chicken Soup for the Soul Entertainment Inc. (CSS Entertainment) has acquired Pivotshare Inc., a global subscription-based video-on-demand (SVOD) service.

Irvine, California-based Pivotshare offers online programming covering multiple categories, including music, sports, religion, arts and culture, lifestyle and family, generating approximately $2.5 million in annual revenue from approximately 25,000 paid subscriptions with an average monthly revenue of $9 per subscription. Cos Cob-headquartered CSS Entertainment stated that it will use this acquisition to launch its SVOD business, adding that the deal is expected to create approximately $1 million per year in cost savings.

CSS Entertainment mostly used perpetual preferred stock to complete the acquisition.

“After our recent perpetual preferred stock offering, we decided to offer our Series A preferred shares as an acquisition currency to the Pivotshare shareholders, and they agreed to accept $3.35 million of the $4.35 million purchase price – excluding closing costs – in the form of our perpetual preferred stock,” stated Scott W. Seaton, vice chairman of the Nasdaq-traded CSS Entertainment. “The balance of the purchase price is $257,000 in cash and 74,235 shares of CSS Entertainment common.”