Cinedigm Corp. announced Thursday its intention to buy a 29 percent stake in a Chinese entertainment production company.
Cinedigm, in Sherman Oaks, and Starrise Media Holdings Ltd. have worked together previously on bringing Chinese content to the U.S and in November announced a deal to release films theatrically, via broadcast television and on digital platforms in China.
Cinedigm Chief Executive Chris McGurk called the latest transaction a transformative one for Cinedigm.
“It is a key step in our plan to become the first true North America/China studio, uniquely well positioned over the long term to distribute premium film and TV content and launch high-growth streaming channels in the two biggest and most important entertainment markets in the world,” McGurk said in a statement. “It will also enhance our efforts to rapidly build our fast-growing (streaming) business.”
The all-stock purchase is expected to close in the first quarter of next year.
Shares of Cinedigm (CIDM) closed Thursday up 1 cent, or about 1.4 percent, to 80 cents on the Nasdaq.