Chicken Soup for the Soul to acquire Pivotshare
Chicken Soup for the Soul announced the signing of a definitive agreement to acquire Pivotshare, a global subscription-based video-on-demand service offering channels online across a variety of categories including music, sports, religion, arts and culture, lifestyle and family, launching CSS Entertainment's subscription video-on-demand business. Pivotshare is comprised of a series of subscription-based VOD channels online with 28,000 hours of programming. The network generates approximately $2.5 million in annual revenue and has approximately 25,000 paid subscriptions with an average monthly revenue of $9 per subscription. The company primarily used perpetual preferred stock to complete this 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. "The balance of the purchase price is $257,000 in cash and 74,235 shares of CSS Entertainment common."