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.”